How wealth taxes work in practice
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A wealth tax implemented sanely that replaced income, sales, and fee based revenue generation could be a good thing.
In general the tax burden should fall on the investor class over the wage class. Though the government should be small enough that the overall tax burden should be considered trivial.
One big place I would really like to see a wealth tax (instead of an income tax) is a rent on IP, ballpark would be maybe .75% but I haven't done the math in a while. The implementation would be that the IP holder is required to set his own value, and there is an open auction for the IP with a starting bid of that value. If anybody bids then the bidder can buy the IP by paying the holder then pay the tax. If nobody buys it then the IP holder pays the tax as his set value, if he fails to pay the tax the IP goes into the public domain.
This would of course be a part of a comprehensive tax reform that moved taxes away from income and consumption to tariffs and other methods that directly impact corporations more than they do individuals.
Fee based revenue generation is the only fair system. Why you'd want to get rid of that is beyond me.
I'd want a tax-free then a taxed period of IP, to still encourage development of that IP by smaller players. Just allowing everything to be 'eminent domained' by the blackrocks of the world OR you have to set your own tax-rate higher than realistic to your wildest dream evaluation seems like a poor system for innovation.
At a reasonable enough tax rate that wouldn't necessarily be an issue. If the idea is really promising then investors would happily front the tax. Or if a modder could get 10k from a game publisher for a project he was working on in his spare time that seems like a win.