> It’s highly unlikely the government would be taking from your stock directly.
It makes no difference whatsoever whether they take the stock directly or force you to sell the stock in order to pay the tax in cash. The end result is the same—your stock is reduced by the amount of the tax.
That is a valid concern which I acknowledged in my comment. It would probably result in investors seeking investments with an expected return that offsets the wealth tax by a decent margin, while also paying dividends. I am by no means an investment expert, but maybe those are the kinds of investments we should be encouraging people to invest in anyway? Hyper-growth, overvalued companies are often great investments, until they’re not.
Edit: if we don’t want the government picking winners and losers, another option could be deferred taxation; when you sell, you pay taxes for however many years you held the stock.
It makes no difference whatsoever whether they take the stock directly or force you to sell the stock in order to pay the tax in cash. The end result is the same—your stock is reduced by the amount of the tax.