capital levy

Also found in: Dictionary, Thesaurus, Legal, Financial, Wikipedia.

capital levy,

form of taxation by which the government takes part of the capital of any person or business, as distinguished from a tax on personal or business income. It is usually applied to all capital above a certain minimum and may be set aside for a specific purpose, such as the reduction of the public debt. It was used by several European nations experiencing financial difficulties after World War I, and has been advocated as a measure of social welfare and a deterrent to war profits. Opponents of the capital levy stress its implied penalty on saving. In World War II, Great Britain and the United States resorted to extremely high rates of direct taxation in order to accomplish many of the aims of the capital levy.
The Columbia Electronic Encyclopedia™ Copyright © 2013, Columbia University Press. Licensed from Columbia University Press. All rights reserved.
Mentioned in ?
References in periodicals archive ?
This is evident from his return to the question of the capital levy in A Capital Levy and a Levy on War Wealth (1920).
"The sharp deterioration of the public finances in many countries has revived interest in a 'capital levy'--a one-time tax on private wealth--as an exceptional measure to restore debt sustainability," the IMF stated in its Fiscal Report released in October 2013.
A capital levy could then be argued to be a generally equitable instrument--although not necessary an efficient and prudent instrument, as we have seen in Section 3.
Without an upper bound imposed on capital income taxes, it is easy to see why a single capital levy at date 0 is optimal in the environment studied by Chamley (1986).
Governments, as we have noted above, may sometimes seek revenue through a surprise inflation that acts as a "capital levy" on money.
The capital levy, on the other hand, is so great a breach as to be associated more with unforeseen consequences than with slow progress through experiment and search: "A sudden act of disruption permits no such breathing-space - the old has gone before the new has grown to take its place; and the result is a dangerous vacuum.
THE NFU is seeking urgent talks with First Milk after the co-operative announced it is delaying the next milk payment by two weeks, increasing capital levy contributions and recouping extra capital from farmers at a time of financial pressure.
In one fell swoop, he lost his life savings--the result of 35 years of hard work and thrift--in the "capital levy" imposed on Cyprus by the International Monetary Fund, the European Commission, and the European Central Bank (ECB), a trio commonly known as the Troika.
The list of options, obtained by The Register-Guard in a public records request, includes issuing bonds; launching a campaign for a voter-approved capital levy; using urban renewal district taxes; using one-time dollars that may materialize over the next few years; and waiving permit fees and other development charges.
i): the Rignano Plan, the large-scale capital levy and the economic performance of the Attlee Government are, all three, issues that had ceased to command much attention.
"The sharp deterioration of the public finances in many countries has revived interest in a capital levy, a one-off tax on private wealth, as an exceptional measure to restore debt sustainability." the report claims.