One thing that taxing billionaires will do is drive the wealth in "Foundations" that are controlled by them.
If you have a billion dollars, all your pleasures and needs are taken care of. The use for the excess money is ego and power.
Thus, if it is tax advantageous to put the money into a foundation, then you will do it. Does anyone really draw a distinction between Bill Gates giving money to a cause and the Bill and Melinda Gates Foundation giving money to a cause? While the Gates Foundation is doing great things, it is probably very ego gratifying to have the top scientists and philanthropists and heads of governments coming to you asking for money. It is also a very powerful position to be in charge of so much money.
Thus, if we have a wealth tax, we will see the money go from being the billionaire's personal money, into being part of a foundation named after the billionaire that they control.
If you have a billion dollars, all your pleasures and needs are taken care of. The use for the excess money is ego and power.
Thus, if it is tax advantageous to put the money into a foundation, then you will do it. Does anyone really draw a distinction between Bill Gates giving money to a cause and the Bill and Melinda Gates Foundation giving money to a cause? While the Gates Foundation is doing great things, it is probably very ego gratifying to have the top scientists and philanthropists and heads of governments coming to you asking for money. It is also a very powerful position to be in charge of so much money.
Thus, if we have a wealth tax, we will see the money go from being the billionaire's personal money, into being part of a foundation named after the billionaire that they control.