Modeling the growth does not change the results in any way that makes the tax seem more favorable. Taxing away 1% of an asset that grows 0% every year leaves 4

Modeling the growth does not change the results in any way that makes the tax seem more favorable. Taxing away 1% of an asset that grows 0% every year leaves 45% of the assets that would be present without the tax after 60 years. Taxing away 1% of an asset that grows 7% every year leaves 45% of the assets that would be present without the tax after 60 years. However, to be more realistic, modeling growth makes the taxation even worse, because at times when your equity is at a high valuation, you need to sell some equity and then some extra on top of that in case your equity value crashes before the end of the year/ end of the tax period. You are forced to act defensively.