What do disputes about the value of the late Michael Jackson’s image and the divorce of Bill and Melinda Gates have in common? No, it’s not a joke, or at least not a very funny one — the answer is that they both highlight just how difficult administering a wealth tax would be.
As I’ve noted here in the past, one of the most significant issues any wealth tax must grapple with is how to value non-liquid assets. In order to calculate tax liability based on net worth, it’s necessary to establish how much a taxpayer’s assets are actually worth. That’s fairly easy for things like stocks and bonds, but it’s much harder for other things, such as, for example, a celebrity’s image and likeness.
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