Compare, for example, a land value tax (LVT)and the current English and Welsh council tax. To some degree (albeit approximately, and poorly at that) the council tax is a transaction tax. It has implicit within it a charge. That is why, for example, it is capped.
What’s the transaction which takes place? Breathing or summat?
Another is in terms of rate of return: in the modern, imperfect, economy rates of return to those with significant wealth have been much higher than those to people of lesser wealth because of tax abuse, market control through exercise of monopoly power and other reasons. A wealth tax corrects for that.
Next, there is an opportunity cost. As Brooke Harrington has explained in her book Capital Without Borders, a characteristic of modern capital accumulation has been it’s extreme risk aversion, which is a trait accentuated by the role of professional trustees and risk managers in the management of many modern portfolios. This has reduced the amount of capital exposed to entrepreneurial activity, with implications all too obvious in the world economy where, as I suggested in my book Dirty Secrets, this risk aversion is killing capitalism from within.
How can you actually believe both of those things?
And perhaps last for now (although I am very open to persuasion that there are issues I have not listed) is the fact that those with wealth have, come what may, lower marginal propensities to consume meaning that society cannot be indifferent to the distribution of wealth beyond certain limits if it is interested in maximising well-being.
Yes you idiot, they go and invest it to the benefit of society. Sheesh.