It would seem that your assumption in this is that there’s a redistributing power that has access to tax all assets. Up until recently this would have been pretty much true.

However, a wealth tax will encourage people to shift their assets into privacy oriented cryptocurrency. Since stores of value such as gold or bitcoin would be harder hit than passive income earning assets, the wealthy will hide all of their unperforming wealth in horizen, zcash, monero etc.

Perhaps to be viable, nation states can only apply this to real estate which cannot be hidden from sight.