It doesn't have to. The point isn't a perfect society, the point is to prevent resource hoarding and the accumulation of totalitarian power. When we allow wealth to accumulate we are also allowing power to accumulate.
Laughable - the state has been growing on a one-way trajectory: ever larger, ever more powerful. It is run by bureaucrats who look after their own interests first, and who have no feedback loop between their own performance and reality.
Think about this next time you go to the DMV or have to wait in line to see a doctor or deal with some kafkaesque snarl of paperwork. Your democratic will counts for nothing in the face of limitless state power.
What if those in power are elected? What if it wasn’t an absolute limit but harsh taxation?
Relatively speaking this would increase the power of military generals, presidents, and criminals, for a start. Is that a good thing? maybe, but restricting power from a group needs to be assessed in terms of holistic power balance not naive platitudes like 'No one should be a millionaire/billionaire'.
Like the power of JD Rockefeller and Andrew Carnegie, which was much greater than any rich man today.... oh wait.. those went defunct too.
Honestly, the fact that their heirs, despite having untold wealth were unable to keep the business going actually shows that individuals sometimes do have merits on their own, independent of the amount of money they were able to collect.