This seems to me to be a very weird and overly simplistic modelling. Where I live has a wealth tax, and it's in exchange for a capital gains tax, dividend tax,

This seems to me to be a very weird and overly simplistic modelling. Where I live has a wealth tax, and it's in exchange for a capital gains tax, dividend tax, withholding tax, that sort of thing. The way it works here is that it's a tax based on fictitious returns from you having invested your money, i.e. based on your wealth, a certain return is assumed and you're taxed on that. The first €30k is ineligible for tax, then there are a few bands: €0-€72k, €72k-€99k, €99k+ (numbers rounded.) The effective tax for these bands ends up being 0.58%, 1.34%, and 1.68%. These are last year's numbers, I'm not sure if they're different this year. The idea is that if you have more than €30k sitting in a savings account, you ought to be doing something with it to get a return on investment. The issue I have with it is that it's not very responsive to changing markets, like at the moment where savings interest rates are near enough to zero and the stock market is complicated, it doesn't account for that sort of thing well compared to a regular withholding tax. There are also exemptions, I think the value of your primary residence isn't counted for example, though I haven't yet had to deal with it, so I'm not totally sure.