Why a Wealth Tax Would Be Good for the Wealthy
Is it fairer to pay more tax? Dr. Adam North discusses why a wealth tax would benefit the wealthy.
We’re used to hearing the wealthy described as the losers in any conversation about wealth tax. After all, it’s their money that’s being taxed - right? But what if that narrative is too narrow, and perhaps even self-defeating?
Previously in the wealth tax series we’ve discussed the benefits of wealth tax for the 99% and not the 1%. However, in this article, I want to challenge a simple idea: that a wealth tax is bad for the wealthy. In reality, if designed correctly, a wealth tax could provide long-term security, economic stability, and social legitimacy for those with the greatest fortunes.
In short: a well-structured wealth tax is not an attack on the rich. It’s an investment in the world they want to live in.
1. Social Stability Is Good for Business
Wealth doesn't grow in a vacuum. It depends on functioning markets, stable institutions, educated workforces, and consumer demand—all of which are funded, in part, by taxes.
When inequality spirals too far, social and political instability rise. History is full of examples—from the Roman Empire to modern populism—where extreme inequality triggered backlash, often violent. A modest wealth tax is a way of redistributing opportunity before redistribution becomes reaction.
For the wealthy, this isn’t charity. It’s self-preservation. As billionaire investor Nick Hanauer famously warned:
“If we don’t do something to fix the glaring inequalities in this economy, the pitchforks are coming.”
2. A Wealth Tax Could Avert Harsher Alternatives
Opposing any form of wealth tax now may invite far more aggressive policies later. Just as progressive income tax replaced populist land revolts in the 20th century, today’s billionaires have a choice: support a moderate wealth tax now, or face potentially sweeping reforms when public patience runs out.
Consider this: if a 2% annual tax on ultra-wealth is rejected today, tomorrow's governments might consider windfall levies, confiscatory inheritance taxes, or even mandatory asset redistribution in times of crisis.
Supporting moderate, transparent wealth taxation is a way to shape the future, not be caught off guard by it.
3. A Wealth Tax Can Build Trust
In a time of mounting public mistrust, even the most self-made fortunes are increasingly seen as illegitimate. The 2008 financial crisis, COVID bailouts, and soaring asset prices have generated a perception that the rich live by a different set of rules.
A wealth tax offers the wealthy a way to demonstrate civic responsibility and leadership. Contributing visibly and proportionally to the public good can restore the social contract between capital and community. This may also increase public trust in politics.
This isn’t about optics—it’s about legitimacy. Wealth that is seen as fair and earned is far more sustainable than wealth perceived as hoarded or untouchable.
4. A Smart Wealth Tax Doesn’t Harm Innovation
Opponents often argue that taxing wealth kills innovation or punishes success. But a well-designed wealth tax targets accumulated capital, not start-up founders scraping for liquidity.
Here’s the key:
Set a high threshold (e.g. £10 million+ of net wealth).
Exempt primary homes, pensions, and active business assets.
Cap annual liability to a percentage of actual income or dividends.
Such a design doesn’t punish risk-takers or entrepreneurs—it simply asks that those who have already won big to contribute fairly to the society that enabled their success.
5. Most Wealthy People Already Support Fairer Taxation
Surprisingly, many of the wealthy already agree with this. In the UK, a Patriotic Millionaires survey of people in the top 6% of income and wealth supported higher taxes on the ultra-rich.
Globally, over 130 millionaires and billionaires—under the banner of Patriotic Millionaires and Tax Me Now—have called for wealth taxes on themselves. They understand something many of their peers don’t: hoarded wealth in a fractured society is a fragile thing.
Conclusion: Wealth Deserves to Be Safe—and Sustainable
A wealth tax, if designed with care and purpose, isn’t about tearing down success. It’s about making success sustainable. It’s a way for the ultra-wealthy to say:
“We believe in the future. We believe in the next generation. We believe that prosperity must be shared to endure.”
Rather than seeing it as a threat, the wealthy should see a fair, well-structured wealth tax as an opportunity—to secure legitimacy, prevent instability, and build a stronger, safer society in which wealth can thrive.
In that sense, a wealth tax isn’t just good for the country. It’s good for the wealthy too.
In the next article of the series, I will discuss some ways to incentivise the ultra-wealthy to pay the wealth tax. Look out for it next week.
Find the previous article on why the rich paid more in tax in 1949 by clicking this link.
For more, visit: Our Wealth Tax Series