The following is  a comment I posted in response an article by John Mauldin

By Glen Wallace

As a partial solution, let me suggest a whole new type of stock market fund: The Government Redistribution Fund or GRF. The GRF will be the result of a hefty asset tax on the ultra wealthy -- those with assets ranging from ~100 million dollars on up. The tax rate will be progressive with those with, for instance, 100 million in assets might only face a one percent rate, while those with close to 100 billion in assets would face more like a 99 percent tax rate.

The potential problem with such an asset tax is that many of those in such a tax bracket have much of their wealth tied up in the stock of the corporations they head or used to head.

If they all sold their stock all at once to pay such a tax, that would flood the markets with a huge supply, potentially crashing the price of not only the stock being sold but could have a negative knock-on sell-off effect on the market as a whole. The solution I came up with is to set up a fund where the payment of the asset tax would be in the form of stock being transferred into the fund, the GRF.

Initially, the only revenue the government would derive from the GRF would be in the form of dividends. But it would also be an open fund where the general public and institutional investors could buy shares. Once an investor bought a share, the share purchase price would be revenue for the government, but then of course the investor would enjoy any dividends entitled to the shares purchased and could also turn around and sell the shares to someone else, just as they could with shares owned in any other stock market fund.