Wealth Tax: Why Higher Taxation of Large Fortunes is Overdue

Wealth inequality is a growing global concern, impacting not only individuals but also the financial health of states. Many governments are accumulating debt, partly due to declining tax revenues and rising expenditures on essential public services like education, security, and infrastructure.

The article argues that a potential solution lies in increasing taxes on the extremely wealthy. This approach is presented as a way to address strained public budgets and as a matter of moral necessity, reflecting a widespread sense of injustice.

While notions of morality and justice can be debated, the article emphasizes that tax systems should be designed for societal acceptance, economic efficiency, and minimal harm. From both a societal perspective on fairness and an economic viewpoint on fostering prosperity, higher taxation of large fortunes is deemed logical and unavoidable for Germany.

The societal definition of justice, based on performance and need rather than entitlement or strict equality, supports the idea that income and wealth should reflect individual effort. Simultaneously, a baseline of human dignity and social participation must be guaranteed for all. A broad consensus exists against entitlements that contradict these principles, and many believe that rewarding hard work with greater wealth is acceptable.

Data from the Global Wealth Report 2026 highlights the extreme wealth disparity, both globally and in Germany. Global net wealth reached a record $550 trillion in 2025, a sum so vast that if represented in $100 bills, it would stack nearly 1.5 times the distance to the moon. While this wealth is primarily in assets like real estate and stocks, not cash, the report underscores the significant growth in global financial assets.