The debate on taxing wealth is intensifying as governments seek sustainable revenue to address inequality, climate change, and social security gaps. South Africa, one of the world’s most unequal nations, faces urgent calls for wealth taxes, with the richest 0.1% owning 25% of national wealth. Yet, capital income remains undertaxed, and GDP growth stagnates at 0.8%. International experiences demonstrate that wealth taxes, such as financial transaction taxes (FTTs), dividend taxes, and net wealth taxes, can generate significant revenue without stifling growth. For example:

• Argentina’s solidarity wealth tax (2%–3.5%) raised $2.4 billion from just 12,500 individuals during Covid-19.
• Belgium’s FTT contributes 2.4% of annual tax revenue via low-rate levies on stocks and bonds.
• France’s dividend tax hike (15.5% to 46%) boosted corporate investment by 15%, debunking myths about economic harm.

Critics argue that wealth taxes risk capital flight or administrative complexity. However, success hinges on strong enforcement, international coordination, and progressive design:

• Low, tiered rates (e.g., 0.5%–1.5% on net wealth) balance revenue and fairness.
• Closing loopholes via third-party reporting and tax amnesties, as seen in Colombia and Argentina.
• Ring-fencing revenue for social spending (e.g., pensions, healthcare) to bolster public trust.

For South Africa, we recommend:

1. Expanding capital income taxes with progressive rates.
2. Raising dividend taxes (currently 20%) toward the OECD average of 24%.
3. Introducing an FTT (0.1%–0.3%) to curb speculation and raise ~R19 billion annually.
4. Implementing a net wealth tax (moderate thresholds, minimal exemptions).

Key precondition: Strengthen SARS’ capacity, enforce capital controls, and leverage UN tax frameworks to prevent evasion. Wealth taxation isn’t just revenue, it’s a tool to reduce inequality and fund inclusive growth. The time for reform is now.