Wealth isn’t always liquid assets.

Let’s say you wanted to tax Bezos at 20% of his wealth. Well, the majority of his wealth is tied up in Amazon. Amazon is worth more now, so the value of his stock went up.

Now, in order to tax that, he’ll have to convert some stock to cash. Selling that much Amazon stock would devastate the share price, lowering its value, and by extension Bezos’ wealth that you just taxed him on.

That’s why wealth taxes don’t work.

Wealth isn’t always liquid assets.

Let’s say you wanted to tax Bezos at 20% of his wealth. Well, the majority of his wealth is tied up in Amazon. Amazon is worth more now, so the value of his stock went up.

Now, in order to tax that, he’ll have to convert his stock to cash. Selling that much Amazon stock would devastate the share price, lowering its value, and by extension Bezos’ wealth that you just taxed him on.

That’s why wealth taxes don’t work.