I'm confused by the comment "also confiscates a fixed portion of its residents’ net wealth every year" that is followed up by "each additional SFr1m ($997,000)

I'm confused by the comment "also confiscates a fixed portion of its residents’ net wealth every year" that is followed up by "each additional SFr1m ($997,000) the richest Zug residents put in the bank incurs an annual tax bill of SFr3,000". So...is it based on net wealth or how much is in your bank account. Most of the article seems to revolve around net wealth. Most billionaires don't have billions in a bank account, it's in stock. The actual net worth calculation is non-existent in the article.