Fool’s gold
Think tank: Institute of Economic Affairs
Author(s): Kristian Niemietz
May 1, 2026
This report from UK think tank the Institute of Economic Affairs examines the case for wealth taxes and asks why they have failed across Europe.
While Britain does not have a simple ‘wealth tax’, it raises more from wealth-related taxes than any other OECD economy. UK wealth inequality is not especially high or rising—the top 1% hold about 22% of total wealth, below the EU average. Wealth taxes have been abandoned by almost all Western European countries due to high administrative costs, damaging behavioural responses, and limited revenue-raising potential.
Rather than penalising wealth, this paper argues for superior alternatives: a pension system modelled on Australia’s and a ‘YIMBY’ housing boom to help more people build assets.
