Which of the following is considered an attribute of wealth taxes?

Prepare for the CGFM Exam 1 with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you understand. Ace your exam by studying the key concepts of the governmental environment!

Wealth taxes are specifically designed to target the accumulation and distribution of wealth, rather than income or consumption. The options aligned with this definition include real property taxes, personal property taxes, and estate taxes, which directly assess value based on owned wealth.

Real property taxes are levied on tangible assets like land and buildings, while personal property taxes might apply to vehicles or other owned goods. Estate taxes occur upon the transfer of a deceased individual's assets, ensuring that wealth is taxed when it changes hands.

These taxes provide a mechanism for governments to raise revenue based on the wealth individuals possess, distinguishing them from other forms of taxation which may focus on transactions or income generation. This characteristic aligns closely with the fundamental purpose of wealth taxes, indicating why this set of attributes is the correct answer.

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