[JackFr]

> You're taxed on money you are simply holding.

Exactly, and that is why it's such an abysmal idea. Wealth is capital and how capital is allocated to a large extent how fast an economy will grow. To take private capital, which presumably was invested where it could find the greatest risk adjusted return, and move it to another enterprise (presumably a darling of some vested interest) or worse to consumption leaves the overall economy worse off.

Taxing income, which is a flow rather than a stock, has distorts incentives on the economy as well but much more gently.