I still don't even see how it works. I can understand with something that is fairly liquid like stocks, but if you own a farm it's not like you could always easily sell off 3% of your farm every year to keep the government happy. Aren't property taxes enough? They're relatively low compared to 3% a year that various democrats call for. Land really doesn't "make" money for you like say a physical factory unless you're using it. I imagine these types of issues happen with other sorts of businesses. I mean I don't have a problem with higher taxes on "annual wealth increase" or profit, but to continuously tax the same thing over and over and over is ludicrous in my opinion at least not at these levels. Property taxes are already high in most states.