> I don't really see any other solution, can you explain it?
One reason a wealth tax is controversial and less precedented is that it taxes unrealized gains.
Another alternative would be to raise taxes on high income rather than wealth. In the 1950s people were taxed at something like 90% for every dollar over $400,000. We could go back to something like that but adjust that $400,000 to something like a couple of million, to match inflation.
This essentially puts a cap on wages. The money you make below the cap would be taxed at the same rates we pay today. Once you get above that amount, you keep most of what falls below, but the government would take almost all of what's above the cap.
I think if you do it that way you would also have to tax interest and capital gains similarly to wages. That's another loophole that's very commonly exploited in the last few decades, investment income gets taxed lower.
One reason a wealth tax is controversial and less precedented is that it taxes unrealized gains.
Another alternative would be to raise taxes on high income rather than wealth. In the 1950s people were taxed at something like 90% for every dollar over $400,000. We could go back to something like that but adjust that $400,000 to something like a couple of million, to match inflation.
This essentially puts a cap on wages. The money you make below the cap would be taxed at the same rates we pay today. Once you get above that amount, you keep most of what falls below, but the government would take almost all of what's above the cap.
I think if you do it that way you would also have to tax interest and capital gains similarly to wages. That's another loophole that's very commonly exploited in the last few decades, investment income gets taxed lower.