I wouldn't say destroy, but it definitely distorts things and I would prepare for some unintended consequences. For example, it incentivizes those taxed by such a scheme to become citizens of low tax countries like new zealand where there is no wealth tax and even no cap gains tax, renounce their US citizenship, and move there. Peter thiel for example recently got a new zealand citizenship likely to prepare for such an event.
"New policy will have unintended consequences" is a pretty unassailable position and of course not one I disagree with. I don't think you can say apriori that it would cause more harm than good though.
I'm sure that gimmick-y things to avoid wealth redistribution can be legislated on as they have been in the past.
