Two questions:
1. How will this help with wealth that's already accumulated? I get how this will slow further accumulation.
2. How about capital flight? If the US enacts a policy like this, what stops the super rich from moving to other countries?
1. How will this help with wealth that's already accumulated? I get how this will slow further accumulation.
2. How about capital flight? If the US enacts a policy like this, what stops the super rich from moving to other countries?
You're assuming redistribution wouldn't happen through heavy taxation of existing capital and property, like France's wealth tax[1], where you pay when your worldwide net worth is above 1,300,000€.
2.
The US taxes citizens regardless of where they live[1], and in the case of renouncing the US citizenship it is required you pay an exit tax[2] equivalent to the capital gains of selling all your property when above $680,000.
[1]: http://www.french-property.com/guides/france/finance-taxatio... [2]: http://hodgen.com/does-the-united-states-stand-alone/ [3]: http://www.irs.gov/Individuals/International-Taxpayers/Expat...
2. Make the right to conduct financial transactions contingent on one being part of a global financial network which abides by a specific set of taxation rules. This can take many forms. The U.S. in particular is well-placed to initiate and control such a system. However, considering that Wall Street has captured Congress, I doubt the U.S. will come anywhere close to this in the first place.
But with respect to question 1, the most important response is that we can't let the sunk cost fallacy stop us from adopting good ideas.