It seems the community did not understand what I mean. So let's simplify the concepts with numbers. There are 330 million people in the USA or let's say 100 million families. Further, let's say the basic need of each family can be met by 100 thousand a year. So the total expenses to cover the basic need for the people of the USA is 100 million times 100 thousand which is 10 trillion. The worth or total assets of the USA is more than 400 trillion. So we only need 3% worth of tax to cover the basic needs of the people. What are we doing with the present tax system?
EDIT Motivation: There is a clear distinction between human's "basic needs" and "wants" if not, every govt should have its own distinctions. The point is, that each Govt should be capable of satisfying the basic needs of the people first, before considering anything else. To achieve this goal, IMHO, one needs to organize the requirement at the source. For every dollar Govt prints, a percentage needs to go towards providing the basic needs. A Govt needs to be rich in order to do justice to the people. In addition, human needs to understand that primary purpose of the work is to serve humanity, not to earn money for themselves alone.
I am trying to understand the economic consequences if a country decides to tax every bank account but not the earner alone. This means instead of income tax, govt would collect money by having negative interest rates on the people or companies, who have money in their banks. The reason for such action is to reduce inequality. This can have a balance version as well, meaning some amount tax and some negative interest on the saving accounts.
The idea of negative interest is that you pay money to the Govt instead of getting money from the bank as interest. Here, saving is not encouraging as the present crisis is related to an imbalance of money in people's accounts. This is derived from the fact that poor people have no money to do anything but some have all to do anything.
EDIT: Here assumption is work and money are replaceable and a kind of one-to-one bijection and reversible mapping. The present tax system replaces work with money, my question is, can we rotate money with money (or add a map/cycle in the system). Can we have money to the money in the tax system as well (not a job to money alone, which is the present tax system)?
There is no reference to the above, as it is an idea to reduce the imbalance of living standard of people of the world.
EDIT: The question may not be clear because we tend to differentiate money between different accounts. For example money in a savings account is treated differently than in a loan account. My point is this distinction is artificial? Both should be treated as the same. Secondly, any other form of value is not in the picture, so the question has nothing to do with the existing wealth tax.
EDIT: The closest I can think of is sales tax. You pay tax for each sale it does not matter who sells to whom and what it is. Exactly you pay tax on each dollar in the bank.
EDIT: Example: A person/company has different bank accounts for example say Checking accounts, Savings accounts, Money market accounts,(MMAs), certificate of deposit accounts (CDs), and the person/company has 100 dollars in each account so the person/company pays tax on 400 dollars. One can say it is a kind of wealth tax but wealth is related to cash alone.
The question is if there is a tax i.e. to pay to the Govt, from every bank account (like every job pays tax). whether this would lead to unsustainable "economic consequences"?
EDIT: Finally, I think I got the correct terminology. Wikipedia states that the financial position of the United States contains assets of at least 269.6 trillion and debts of 145.8 trillion. I postulate there would be at least that much cash in the USA. This cash may not be in bank accounts but must be in some form, in people's or companies' names? My whole question was to tax on these amounts not on "income".
Final EDIT: It is not wealth tax. For example, X has 500K and bought a house from Y. Now X does not pay tax but Y does, as he has 500K. Now if X borrows 200K by mortgaging the house then he has to pay tax on 200K. The general concept is that X should not pay tax as he is taking a loan. The point is paying interest is not a contribution to society so it should not be an excuse for not paying taxes. Proposing to change paying tax on the basis of income but it is based on the worth of a person. I am not saying there should not be a wealth tax I am just explaining in this edit the difference between the wealth tax and the proposed one.