Originally Posted by Rodney

One variant on this that might work better would be to have a tax on capital -- not capital gains, but on capital itself above a certain amount. It'd help fund the gov't while reducing the tax burden on normal folks, which in itself would stimulate the economy and, yes, possibly cause inflation.
This tax already exists. Most states and localities already have this form of tax. It's called "property tax." A real burden on people (such as farmers, ranchers, small businesses) who may have assets (capital) but a low or unreliable cash income.

I don't know if a capital tax is a good idea or not. But personally, I think accumulated wealth is a positive force only when it's being used to create new wealth and resources, Isn't most capital wealth used for these purposes--or held in wait for such opportunities?

not simple to redistribute money from one pocket to another Isn't this what most taxes do??
or speculate in assets or resources.

There was a science fiction writer back in the '60s name of Mack Reynolds who was an old socialist and political thinker, and he wrote a series of novels based on the advantages and disadvantages of every possible form of society he could see he U.S. moving towards -- meritocracy (the more $$$ you have, the more votes you have), the capital-tax society, several variations on the super-welfare state, an Internet-centered society with state control (back in the '60s, yep), and more. He wasn't exactly a great writer, but the ideas were good and the presentation of advantages/disadvantages was pretty even-handed. In Reynolds' worlds, there was never a utopia or a perfect answer. Reynold's personal Utopia was to earn his money selling books in a market economy (the USA) but to live in a socialist economy (Mexico) thereby avoiding most taxes.All of his worlds had a crummy side, and that's where his protagonists usually lived. If you ever see his stuff around, it's worth a look.