As income gaps widen, governments debate taxing the superrich to address inequality, with proposals emerging in the U.S. and Europe.
Growing income inequality and displays of billionaire wealth are fueling demands for new taxes on the ultrarich, as seen in recent proposals from various countries, according to DW World.
Proposals in the United States
In the U.S., Senator Elizabeth Warren proposed an 'ultra-millionaire tax' on holdings above $50 million during the 2019 presidential race. Former Governor Mitt Romney advocated for closing capital gains loopholes in a December 2025 New York Times essay, arguing that the wealthiest should contribute more to solve economic issues.
New York City's Mayor Zohran Mamdani suggested raising the city's income tax rate to 5.9% on income over $1 million, while Washington state lawmakers passed a tax on personal income over $1 million in early March, awaiting the governor's signature.
Experts like Brian Galle from UC Berkeley Law School state that taxing the superrich is fair and could enhance democracy by reducing their disproportionate influence on politics and economics.
A major obstacle is that most tax systems only impose taxes when assets are sold, allowing the ultrarich to delay payments. Wealth taxes, which target total assets above a certain threshold, have been implemented in some countries but face challenges.
Thirteen OECD countries introduced net wealth taxes since 1965, but only four, including Norway, Spain, and Switzerland, still have them today. Germany's wealth tax was ruled unconstitutional in 1995 and suspended in 1997, while the Netherlands' was struck down in 2021 for violating European law.
Challenges and Global Examples
Wealth taxes are difficult to calculate due to the need to value assets like homes, cars, and investments annually, potentially discouraging saving and investment. Research from the Tax Foundation indicates that such taxes could lead to capital flight, as seen in Norway where a wealth tax increase prompted high-net-worth individuals to move to Switzerland and the UK.
California is testing a one-time 5% wealth tax on individuals worth over $1 billion, which could appear on the November ballot. Critics, including Governor Gavin Newsom and tech leaders, worry it might drive the rich away by taxing illiquid wealth and unrealized gains.
