ABSTRACT
This chapter shows how well-designed fiscal policy with regards to wealth accumulation can have a substantial impact on all socioeconomic groups, and may ultimately do more to lift populations out of poverty than transfers and other income-based assistance can. Assets improve economic stability; connect people with a viable, hopeful future; stimulate development of human and other capital; enable people to focus and specialize; provide a foundation for risk taking; yield personal, social, and political dividends; and enhance the welfare of offspring. Income taxes, sales taxes, and user fees certafinly affect the amount of after-tax income a household can save in order to accumulate wealth, but the discussion will focus on more direct forms of wealth and property taxation. In the US, prevailing wisdom that home ownership is a key to not only household economic stability, but social stability, may stem from early American beliefs in the power of democratic governance and a participating, land-owning citizenry.
