Why should I be a capitalist and risk my capital when the government confiscates the fruits of my labor and effort? I'll just not try very hard and live on socialist programs and money taken from the rich (as long as they last or don't emigrate to a lower tax country). That should work well for me until all the money from the rich is gone, or they all stop trying like I did.
And we all know how efficient governments are at allocating and distributing resources. Just look at the beautiful double layer of bureaucracy established by the EU in Brussels. That's how I want my tax dollars spent!
One could tax rich and poor
less for all I care. The point is to stop the accumulation of great wealth inherited by individuals by taxing people when they die. For example, Bill Gates would have to sell 95% of his MS shares to pay it, or the state would do it after he's dead. That way, state won't own the companies, but would get huge incomes so they could tax everyone else less. This would assure that performers, not inheritors would be the ones to get rich. And jobs and positions that are today reserved for the born-rich, will be available for anyone to apply to.
Inheriting stuff is not meritocratic, it's Aristocratic. This is not radical socialist ideas btw.. Warren Buffet and Bill Gates are strong proponents of taxing people hard when they die.
So what I think is simply that you would get taxed less in such system, but if you become very very rich, you won't be able to give off that all that wealth to your kids.