Any tax on wealth would have similar effects: You own a business with notional value $2M?  Pay X% of that each year, whether or not the business generates that amount in cash.  You are a retiree with $2M in CDs or bonds, generating your retirement income?  Pay taxes on the capital before you feed&#x2F;clothe yourself. Etc, etc.  Yes, property taxes may impact the middle- or non-1%-upper-class more than a wealth tax, and [a modest degree of] shelter is a basic human need, but market-based property taxes are significantly easier to implement (how to value privately-held businesses? how to deal with offshore assets?).  Perhaps good + implementable &gt; perfect + unachievable.