Property tax taxes an asset that doesn't move, literally and figuratively. Before financial markets exploded, and especially in agrarian societies like the United States at its founding, a property tax was effectively a wealth tax. (It still is a wealth tax, technically speaking, it just no longer reaches the wealth of the richest in society.)

> In what intervals would you do this?

In whatever interval you'd like. Presumably yearly. But don't companies have to "mark-to-market" for their quarterly reports?

> Your bank account would go to zero.

This is already the case with inflation, very deliberately so.

I can't say I'm a fan of a wealth tax. And in any event I don't think it'll ever happen in the U.S. But the reasons for disliking a wealth tax are more complicated than the above.