The logical outcome of this being implemented would be no one bothering to sell their homes, stocks, or other assets, or at least waiting until they absolutely need the money. It would also make it that much harder to get a home.
Of course this would only apply to individuals with taxable income above $1 million.
40% is still excessive. If you’re rich and have enough money lying around, then there is no incentive to take any of it out of the stock market and actually invest it or make use of it.
