What do you mean by negatively compound? I assumed you meant that if you gain no income, losing 1% per year means you lose less than 10% over 10 years, but you don’t seem to have acknowledged that.
Example showing final balance at end of each year:
Year 0: Start with $1000
Year 1: $990 (1% is $10)
Year 2: $980.1 (1% is $9.9)
...
Year 10: $904.38
Although for what it’s worth, I don’t think it makes a lot of sense for the wealthy to comfortably do nothing and contribute nothing to society.
I would prefer wealth weighted income taxes personally.