"The reason wealth taxes have such dramatic effects is that they're applied over and over to the same money. Income tax happens every year, but only to that yea

"The reason wealth taxes have such dramatic effects is that they're applied over and over to the same money. Income tax happens every year, but only to that year's income. Whereas if you live for 60 years after acquiring some asset, a wealth tax will tax that same asset 60 times. A wealth tax compounds." This dramatically incentivizes short-term profit seeking and early exists (for founders and investors), over long-term tech/value development.