Years ago a friend pointed out that it is easier to capture money when it is moving. As workers earn a wage, it is easier to capture a tax as funds transfer from the employer to the employee. At the time an asset is sold, it is easy to capture a tax from the dollars passing from one owner to the next. When purchases are made at a cash register it is easier to add on a sales tax. You get the picture.
And for this simple practicality, the asset tax or Biden’s wealth tax, was doomed from the get go.
There are other practical reasons that gum up the whole idea. Assets fluctuate in value over periods of time. So the years that the asset increases in value you pay a tax, but the years the asset decreases in value the government pays you back? Sounds like an accounting nightmare. Sounds like a scenario made for grift.
Maybe it’s more than just the practicality of money on the move. The severing of ownership leads to a settling of accounts, which includes an obligation to the greater group in the form of a tax. Use of assets for philanthropy, start-ups (basically business charity), endowments and so forth is a different type of supporting the greater group than the stream of funds channeled through taxes to pay for services.
The problem it seems is in the mechanism to draw the substantial assets to turn them over to political process. And maybe that a good thing.