How well would that apply to assets that are hard to measure the value of? Ie a house, a business or a painting even. I think it would encourage a system where people somehow minimize what their assets appear to be worth - or how well they can be measured.
Given how Prop 13 was enacted to not push existing homeowners out of their homes if their property values increased significantly, would there be a similar push under such a system?
edit: What I'm thinking is some sort of total asset valuation placing one in a given bracket, rather than income level. While income tax is income tax, regardless of short-term/long-term capital gains (35%/15%, USA), or salary.