📜 1. Context: To Tax or Not to Tax?
The Wealth Tax Dilemma
In Germany, the Wealth Tax has been suspended since 1997. The Constitutional Court ruled that valuation methods for real estate versus financial assets were unequal. However, calls for its reintroduction are growing. Proponents argue that it is the most effective tool for redistribution, ensuring the gap between the ultra-rich and the working class does not widen.
Opponents, particularly in the middle class, cite liquidity concerns. A business owner might be "wealthy" on paper because they own a factory, but they may not have the cash on hand to pay a tax on those assets.
Internationally, the debate is equally heated. France famously replaced its broad wealth tax (ISF) with a real-estate specific tax (IFI) to prevent capital flight, where millionaires moved their tax residency to Belgium or Switzerland.
🔗 2. Vocabulary Memory Match
Match the term to its definition. Correct pairs will vanish!
📈 3. Policy Details
Select the correct statement based on the text.
1. Why was the German tax suspended in 1997?
2. What is the main "liquidity" concern?
📝 4. Finance Vocabulary (Context)
Fill in the blanks. Incorrect answers will be saved for review.
Word Bank
1. The government hopes that higher taxes will help with wealth ____.
2. We cannot pay the tax because we have a ____ problem; no cash on hand.
3. The ____ of the company include real estate, patents, and machinery.
4. Rising ____ is a major social issue in many developed nations.
5. If taxes are too high, the country might experience ____.
🎉 Audit Complete!
You have analyzed the Wealth Tax debate. Review definitions below:
- redistribution
- liquidity
- assets
- inequality
- capital flight
- suspended
- revenue
- unfair