The rich convinced us that taxing them is too complicated but everyday people can be taxed pretty easily
(discuss.online)
you’d have to dramatically decrease the tax rate
This is a wealth tax, not an income tax. We don't currently have a wealth tax to decrease; we would be establishing a new one. I would propose 1% per year.
My investments
Are you a natural person? Is your portfolio less than $10,000,000 in value?
If you answered "yes" to both questions, nothing changes for you. This only applies to corporate entities and ultra-high-net-worth individuals.
The issue is you’re still incentivizing people to put money into higher returning investments rather than investing in more stable and assets, like bonds.
The only reason that higher returning investments are a problem is because they are used as a vehicle to drive wealth to the (ultra-)wealthy. When the wealthy are charged a high premium for these investments, that reason stops being a reason.
Unless you’re lowering the tax rate as I suggested, you’d have to add a lot of exceptions to not destroy most of the world’s established institutions
The established institutions in question are the ones creating the systemic problems. I see no compelling reason to maintain the institutions responsible. I see no compelling need for "a lot of exceptions". Destroy them. To minimize disruption, we could phase it in over time. Perhaps starting with a $1 billion portfolio exemption and decreasing it to $10 million over the course of a decade.
This would have the ultra-wealthy converting their financial assets to tangible assets; they would be buying up personal property (produced by workers) hand over fist, while the working class would be buying up those liquidated shares from the IRS at a similar rate. Ownership interest in these companies would be rapidly conveyed away from the Problem Class to the Working Class.