The Strategist

Survey: Wealthiest US and Southeast Asian families fear tax hikes more than war

05/24/2024 - 03:14

Tax hikes will pose the biggest risk for the next five years, believe billionaire families in Southeast Asia and the United States.

John Morgan
John Morgan
Bloomberg, citing a survey by UBS Global Family Office, reports that the concerns about tax hikes surpassed even concerns about global geopolitical conflicts and climate change. The study looked at the opinions of firms established by the wealthiest family clans in the world to manage their assets. 

The current state of affairs in the Gaza Strip and Ukraine has no bearing on the status of billionaires in these areas. Wealthy families in the Middle East are more afraid of financial crises than of war, while their concerns in Europe are primarily geopolitical.

Based on responses from family offices worldwide, the top global risk for both the short (12 months) and medium term (5 years) periods is the geopolitical war (58% and 62%, respectively). The richest households' wealth is also at risk from inflation in the near future (39%) and from climate change (49%) over a five-year period. 

As time goes on, the concerns about rising tax burdens rise dramatically: from 17% in the near future to 43% in the following five years.