If your wealth is 100% ownership of Tesla, say, and the government imposes a 5% wealth tax, you have to sell 5% each year of your ownership stake (because the lie of all this is it isn't wealth being taxed, it's ownership) and give it to the government. Until you don't own it any more.

And if you think "well, it doesn't have to go to the government", who else will take it? Who would buy something that they would have to sell 5% of each year? The government, being the only thing that wouldn't be affected by a wealth tax, would become the de facto buyer.