How to convert between wealth and income tax

A 1% wealth tax is mathematically equivalent to a 20% income tax increase, calculated by dividing the wealth tax rate by the typical 5% risk-free rate of return on capital. Most politicians fail to grasp this conversion, casually discussing a "mere 1%" wealth tax without recognizing that implementing it in a median U.S. state would result in a combined marginal tax rate of approximately 61.75%—the highest in the world.