[abrezas]

It isn't at all different. The amount of money the entrepreneur didn't invest into the next company or spent, is the amount he will be taxed as wealth.

This way, the entrepreneur has incentive to spend it or do more investments instead of keeping it in the bank where it would be taxed.

This incentive leads to inequality decreasing by the economy being more active.

[sportanova]

So you're saying that everything not spent or invested into a private company (that you actively manage?) is subject to a wealth tax. Seems like a risky idea because you're putting enormous incentives on increasing riskier investments. But you do realize that whether I put my money into a bank, or a stock, or anything other than a non-private company, it's not just sitting there, being dumb?

[Lawtonfogle]

I spent my money to buy dollar bills. A overall poor investment because of the expected lost, but an investment all the same.

Money is always invested, even if you have it invested in the generic dollar instead of some other product. While it is common to think of the dollar as not being an investment, I find considering it an investment that is constantly losing value due to inflation to work better in my mental model.

[VLM]

You'll have a lot of fun preventing people from "investing" in ETF commodity funds like GLD which is basically stuffing gold in a mattress.

Going a step up, over a reasonable short term, true blue chip stocks are almost gold in terms of stability. Tax them or not?