How Popular are Wealth and Inheritance Taxes?

Overview of the Research Brief

This brief, authored by Ben Ansell and colleagues at the University of Oxford’s Progressive Politics Research Network, examines public attitudes toward wealth and inheritance taxes across the UK and seven European countries. It situates the analysis within the broader context of constrained public finances, ageing populations, and the need for new revenue sources to fund housing, health, and welfare programmes.

Housing Wealth and Tax Potential

The authors note that the ratio of average house price to income in the UK has risen from just over four in the mid‑20th century to between seven and nine since 2000, mirroring similar trends in Europe (e.g., a 15 % rise in Austria and Greece, 30 % in the Netherlands, and nearly 50 % in Portugal). This surge in residential wealth creates a potential tax base, yet wealth taxes remain politically unpopular.

Public Support for Different Tax Types

Survey data from 2022 show that UK respondents rank income‑related taxes (National Insurance, income tax) as the most fair, while inheritance tax, taxes on savings, and stamp duty are viewed as the least fair. Net wealth taxes targeting the very richest receive higher support (up to 86 % in a Zucman‑style proposal) compared with broader inheritance taxes, which are widely seen as “too high.”

Cross‑Country Attitudes to Net Wealth Tax

In a seven‑country EU survey, support for a net wealth tax on the wealthiest households varies from just under 40 % in Denmark to around 58 % in France, but remains positive in all cases. Opposition ranges from 27 % to lower levels, indicating a net‑positive but modest overall endorsement.

Inheritance Tax Perceptions

Across the surveyed nations, a majority consider inheritance taxes on small and medium estates “too high.” Only a small share (about 8 %) support raising inheritance taxes, while many respondents (≈20 %) answer “don’t know,” reflecting low information about the policy.

Framing Experiments and Opinion Shifts

The brief reports an experiment that tested three frames before asking about inheritance tax fairness: (1) labeling it a “death/double tax,” (2) emphasizing its role in “leveling the playing field,” and (3) linking revenues to public benefits such as NHS funding. The “death tax” frame increased the likelihood of judging the tax as too high by ~10 %, whereas the benefit‑link frame reduced that likelihood by a similar margin. The fairness frame had little effect.

Implications for Sustainable Housing Funding

The authors argue that tying wealth‑tax revenues to visible public investments—particularly in sustainable housing and infrastructure—could improve political viability. Clear communication of how tax proceeds fund affordable, energy‑efficient homes may help overcome public scepticism.

Key Facts Summary

• Wealth taxes account for roughly 3 % of UK national income, unchanged since the 1960s.
• House‑price‑to‑income ratio in the UK has doubled since the mid‑1990s.
• Net wealth tax support reaches 86 % for high‑wealth proposals, but overall backing for broader wealth taxes remains modest (40‑58 % across Europe).
• Inheritance tax is consistently rated among the least fair taxes.
• Framing taxes as beneficial to public services can shift opinions by about ten percentage points.

Conclusion for Policy Makers

The brief concludes that successful wealth‑tax reforms will need to combine clear, targeted design (focusing on the very richest) with transparent allocation of revenues to popular public goods, especially sustainable housing, to achieve both fiscal and political sustainability.