Probably some of both. A wealth tax would discourage investment and encourage consumer spending, and would hit the middle class the hardest. As usual - these

Probably some of both. A wealth tax would discourage investment and encourage consumer spending, and would hit the middle class the hardest. As usual - these things are always sold as being targeted at the "rich." Though, it would be interesting to see how people would try to game/avoid it. Instead of investing in stocks, a middle class person looking to preserve some wealth could buy things like physical gold/silver from local dealers with cash, hide it under the floorboards, and definitely NOT report it on their taxes.