[metzby]

Why do you assume the wealth tax has to be paid each year in dollars?

Maybe you could pay it in shares, so no borrowing required.

Or maybe for illiquid assets including non-public stock it could be warrants that you only have to settle at a liquidity event.

It's a strawman to assume a wealth tax will be set up in a broken way when non-broken ways are possible.

[giantg2]

I would think it's valid to make that assumption given taxes must currently be paid in dollars and I don't know of any places that allow it to be paid in equity. I would also think out debt obligations to the world bank must be paid in currency.

[mathraki]

So the government takes a board seat (or two or three) eventually in the company?

There are a lot of rights and some obligations that come with equity ownership in a company beyond financial return.

[jtsiskin]

This makes me think of China, where the government forces board seats in many companies.

[metzby]

That seems like another strawman; e.g. I said it could be warrants for this reason.

There's lots of examples of financial ownership without the holder of the return running the business. Whether it's a state or an ex-spouse.

[Daishiman]

In Germany unions have board seats by law. Doesn't seem to be stopping the executives at Siemens and Krupp from their corporate aspirations.