it would, it kind of is right now, not via a tax but via under- rather than out- performance of US assets. part of the US trade deficit is just a perception that US stocks crush it and they’re what all the world’s investment managers want to hold. 1/

but for the particular purpose of encouraging balanced trade, taxing securities in foreign hands in a manner largely reversible by trading back for goods and services is especially potent. 2/

whether wealth taxes are inherently progressive depends on often contentious definitions. is a flat income tax progressive because 10% of $1M is more than 10% of $50K? conventionally, no, but some people argue about it. 3/

i think we don’t want a wealth tax at low levels of wealth, because we want to encourage a degree of self insurance through savings. but as wealth levels rise, self-insurance transitions toward domination and we do want to tax. /fin