This concept is to create a dynamic, entrepreneurial, competitive, capitalist environment by taxing excessive wealth. If it is determined that it is reasonable for a new enterprise to establish itself with funds of less than one billion dollars (for example) in most (or all) industries, then the wealth of all enterprises and individuals that exceed one billion dollars is subject to a wealth tax. When determining tax a government first establishes the lower wealth tax limit and its rate with the sole intent of maintaining the environment as described above. Secondly the regular tax structure is used to raise additional revenue as required.
The current system of unfettered capitalism is unbalanced because wealth has a direct relationship to political and competitive power. Lobbying and political funding is an accepted practice even though it makes a mockery of the democratic system where representatives are voted into office to give national interests a priority.
It is important to note that double taxation should not be taken into account. An investor (private individual or corporation) subject to wealth tax has the option of diversifying assets such that they are in the competitive (dynamic, entrepreneurial) range to avoid double taxation. A decision to retain an asset subject to wealth tax can be assumed to be because the advantage of the wealth and ensuing power of the asset exceed the tax.