I think the answer is to treat capital gains and dividends the same as ordinary employment income and subject to the same tax rates. Perhaps introduce a sub-1% wealth tax per annum on very large fortunes (100m+) to add friction that the wealthy have to work to counteract.
*and to treat loans against capital assets as taxable income. Otherwise we’ll keep seeing the wealthy avoid taxation by loaning against their assets. So long as rates stay relatively low.
