Wealth taxation as terrestrial economic policy: problems, resistance, and design options

Abstract

The article highlights the role that wealth-related taxes could play in the context of a “terrestrial” economic policy in the sense of Bruno Latour. The aim is to develop a set of preliminary guidelines for an “ecological wealth tax reform” and to put forward the outlines of a concrete proposal for discussion. Three interrelated restrictions are taken into account. First, the current economic and legal systems of many countries impose strict limits on the consistent taxation of high wealth, which is associated with valuation problems. Second, there is concern that nationally limited taxation of wealth could lead to a massive outflow of capital abroad and other circumvention problems. Third, reference is often made to problems of legitimacy and persuasion, which are also prevalent among large sections of the non-wealthy population. We show that a terrestrial perspective can lead to a reassessment of these restrictions.