This paper explores the intricate interplay between wealth taxes, uncertainty, irreversibility, and investment dynamics. As governments consider implementing wealth taxes, understanding their timing effects becomes crucial for both policymakers and investors. We investigate how uncertainty surrounding wealth tax policies influences investment decisions, taking into account the irreversibility of certain investment choices. Our analysis reveals nuanced dynamics that shape investment behavior under varying degrees of uncertainty and irreversibility. By navigating these complexities, stakeholders can make informed decisions that optimize wealth tax timing strategies.

Wealth taxes, Investment timing, Uncertainty

Agliardi E (2001) Taxation and investment decisions: a real options approach. Aust Econ Pap 40:44–55.

Allee KD, Lynch DP, Petroni KR, Schroeder JH (2015) Do property taxes affect real operating decisions and market prices for crude oil? Contemp Acc Res 32:736–762.

Alvarez LHR, Koskela E (2008) Progressive taxation, tax exemption, and irreversible investment under uncertainty. J Public Econ Theory 10:149–169.

Arnott R (2005) Neutral property taxation. J Public Econ Theory 7:27–50.

Arnott R, Petrova P (2006) The property tax on value: deadweight loss. Int Tax Public Financ 13:241– 266.

Atkinson AB (1971) Capital taxes, the redistribution of wealth and individual savings. Rev Econ Stud 38:209–227.

Auerbach AJ, Hassett K (2015) Capital taxation in the twenty-first century. Am Econ Rev 105:38–42.

Bach S, Beznoska M, Steiner V (2014) A wealth tax on the rich to bring down public debt? J Appl Public Econ 35:67–89.

Cnossen S, Bovenberg L (2001) Fundamental tax reform in the Netherlands. Int Tax Public Financ 8:471–484.

Craft ED, Schmidt RM (2005) An analysis of the effects of vehicle property taxes on vehicle demand. Nat Tax J 58:697–720.