[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.

[Brian Griffin]

“how and when is the value calculated? Is it the last trade price on a certain day?”

When Florida had the intangible wealth tax, we used the values in the S&P stock guide.

I believe it was the closing price on the last trading day of the prior year.

“Under $1 million, most wealth is equity in the primary residence.”

People don’t get out of college until about age 22. They probably can’t buy until at least age 24. The house won’t be paid off until age 54, by which time the exemption for the couple that owns it outright would exempt a paid up $1 million house.

I gave five examples, each showing how the exemption system would function.