The wealth tax is a bad tax, but it's trying to fix a bad monetary system. When the Fed only cares about inflation and doesn't care at all about wealth inequal

The wealth tax is a bad tax, but it's trying to fix a bad monetary system. When the Fed only cares about inflation and doesn't care at all about wealth inequality effect of lowered velocity, you get exactly what you incentivize. The Fed lowers interest rates. The wealthy take out loans. The wealthy buy assets with the money from those loans. The values of assets goes up. As the wealthy assets are now up, they are free to take out another loan... as all new money was just piled into markets and isn't consumed the velocity goes down, and therefore the inflation rate goes down. As the inflation rate went down... the Fed lowers interest rates. The true way to solve this issue is by having a constant velocity of the money supply. If you don't give Congress the tools to fix the monetary system, their only option is a hack.