Direct tax assessed simultaneously on the capital resources of all persons possessing taxable wealth in excess of a minimum value and paid at least partly out of capital resources. It aims at capturing a substantial portion of the taxpayers' wealth to enable the government to cope with a major emergency or to redistribute wealth. Capital levies were adopted in many European nations after World Wars I and II.
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Some economists argue that capital levies are a disincentive to savings and investment, though others argue that in theory this need not be the case.
The Capital Levy in Theory and Practice