I don't see the issue with the wealth tax compounding, because the wealth also compounds. That's exactly the "problem" with wealth (from the perspective of soc

I don't see the issue with the wealth tax compounding, because the wealth also compounds. That's exactly the "problem" with wealth (from the perspective of society's growing wealth inequality). Wealth compounds much, much faster than income grows. Someone who inherits $3 million (not much from the point of view of the wealthy) can live comfortably on the growth alone while still compounding their wealth further every year. The only way a wealth tax would compound faster than the wealth itself is if it is larger than the growth rate of the wealth. And since that's averaged at ~8-10% over the past few decades, a 1% tax is not going to eat into a person's wealth over time. It's simply going to slightly slow that growth down.