Even ignoring the several flaws in this toy model (which other comments have discussed), it strikes me that this model doesn't show that a wealth tax is "bad" i

Even ignoring the several flaws in this toy model (which other comments have discussed), it strikes me that this model doesn't show that a wealth tax is "bad" in some sense. The main takeaway is that the overall impact on wealth is larger than perhaps intuitively expected initially. This is not a problem with the wealth tax itself, it just means the correct tax level should arguably be <0.5%.