A One-off Wealth Tax?

In many countries, the response to the covid pandemic has torn huge holes in public budgets. German politicians are therefore discussing a one-off wealth tax to reduce the debt ratio. The Scientific Advisory Board at the German Federal Ministry of Finance (2021) has rejected a one-off wealth tax to finance the burdens of the corona crisis. It would cause considerable economic damage by shaking the confidence of savers and investors. It would also involve major tax collection problems, lacks the necessary exceptional character under constitutional law and is not a targeted instrument for balancing winners and losers of the Corona crisis.