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Opponents say a return of the country's wealth tax would have a relatively minor effect. Martin Lenz, head of National Tax at Germany's KPMG auditing and advisory firm, doubts any appreciable assets would be left after subtracting administrative costs. Both the taxpayer's and the fiscal authorities' costs must be considered, Lenz told Deutsche Welle.
As countries across Europe are currently holding the same debate, KPMG seized the opportunity to compare German tax laws with wealth taxation in France, Italy, Britain, Austria, the Netherlands, Switzerland and the US. The study investigated general wealth taxation and wealth-related taxes, including property, inheritance and gift tax. These are part of the wealth tax - a fact that is often forgotten in the current debate, Lenz says.
Germany is in the middle range of the countries KPMG examined. France - which introduced a wealth tax in 1982 - is at the top of the list and is the only EU state to impose a wealth tax, although Switzerland - outside the EU - also has one.
Other EU states never had a wealth tax or abolished their versions of the levy over the years. Britain has no general wealth tax, although there is an ongoing debate about an extra "mansion tax" on high-value homes. The Netherlands abolished its wealth tax in 2001 due to public opposition and Austria cancelled its wealth tax in 1993 as a result of assessment problems. Italy is not considering a wealth tax, arguing the operating expenses would be too great and revenue too small.
Reviving the general wealth tax is a legally delicate matter in Germany - one that is not likely to be resolved quickly.