This extensive study of history of taxation and theory of taxation has shown that a wealth tax can be an important component of a tax policy as it is proven that it points to a political concern and orientation towards a system of measures that should facilitate more equal outcomes of capitalism. The wealth tax may be an important mechanism in reversing wrongdoings of the failed privatization in BiH, illicitly obtained wealth and grey economy. Given that the estimates of total wealth in BiH amount from 114 to 218 billion KM using different methodologies, which if taxed at only 1% could yield between 1.14 to 2.18 billion KM in tax revenue.