If you start a successful startup in your twenties, a 2% wealth tax with a $50 million threshold means that over the course of your life the government will take 65% of your stock. Why so much? A wealth tax compounds. http://paulgraham.com/wtax.html
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In this case the compounding actually makes the tax *smaller* than if it were based on the initial value of the asset and assessed every year? For example the way property tax works in California...
That depends on what the tax rate is, and what happens to the value of the asset. If the asset is corporate stock, under ordinary conditions, and the tax rate is 2%, no.
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Meaning that the asset appreciates? For sure you are right in that case, I was just responding to the blog post's case.
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