To Reduce Inequality, Tax Wealth, Not Income - The New York Times
An economy, like a business, has a (cross-sectional) balance sheet and income statement. In times of inflationary growth, you want to transfer activity from the income statement to the balance sheet, slowing down spending and increasing saving. So you tax income and provide tax breaks for things like retirement accounts.
However in times of stagnant aggregate demand, you want to transfer wealth off the balance sheet to the income statement, by discouraging endless capital accumulation and starting up spending. So you tax wealth and stoke spending on public projects.
We need the levers to manage both sides, not just for limiting inequality (though worthwhile in itself), but to right an economy that’s fallen on its side.