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Your argument seems to generalize to *any* tax. If we raise taxes at all, the richest will leave. On the margins that's probably true but most people will stay behind, leaving the tax base about the same. Why are wealth taxes in particular terrible?
Because wealth taxes have the unique ability to make you poorer YoY while creating unique challenges around paying them, as they're often targeting highly illiquid assets. An income tax or capital gains tax will never hit you for more than you made that year.
Ahh, I'm starting to see what you mean. How is this different than property tax though? Property tax also can make you poorer, and is aimed at what's usually your most illiquid assert.
Well, this is CA's ongoing struggle over prop 13: there are real challenges when you have a whole state full of "house rich, cash poor" people.
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