Hitorinaka

Wealth taxes that are too high in relation to peers (other countries/states) will often lead to brain drain, capital flight and others. From an individual's perspective, many will see it as a disincentive in starting something new, you may also be incentivized to borrow more money to ensure the leverage is high enough to limit taxation and optimize current quality of life. Your decision to leave assets for your next of kin can also become distorted and you may feel encouraged to spend the money now (on them and otherwise) as opposed to getting tax fleeced.

Many other things need to be in place and fully functional for a high wealth tax to work and even then, it is likely to work for a 10 to 30 year period, only to serve as a dragging anchor at a later stage. I would argue that many of the challenges in Europe from a technological innovation standpoint, can be partially derived in high taxation.

It is also difficult to determine what is the right amount of taxation while taking into account the importance of incentive mechanisms. Also, at what point do tax hikes stop?

Some of the key real solutions to many of societies challenges is to have its populace be more active in all of its inner working, helping them to better understand the constraints and opportunities as opposed to being a bunch of people getting of top of their little soap box. There is also a major need for strong reforms to tackle nepotism, corruption and laziness at all levels of society.