[Leaning Right]

> 4% on the net worth in common stock. <

Wait a minute. Suppose the market has a bad year, and my holdings decrease in value. I still have to pay 4% on the net worth? Each year?

[The Pack Knight]

> 4% on the net worth in common stock. <

Wait a minute. Suppose the market has a bad year, and my holdings decrease in value. I still have to pay 4% on the net worth? Each year?

Better yet, how and when is the value calculated? Is it the last trade price on a certain day? Is it an average over time? Do we look at bid-ask spreads? How do we calculate short positions (if at all)? What about over the counter or closely-held stock? What happens when large investors realize they can use their market power to manipulate the market and lower their tax liability?

Also, where does he get the idea that most "great wealth" is common stock? That simply is not true. Under $1 million, most wealth is equity in the primary residence. Over $1 million, most wealth is business interests other than directly-held stock. This tax would simply cause the wealthy what money they have in common stock over to other asset classes.