Recently liberals and conservatives alike have floated returning to the high marginal income tax rates of the mid 20th century, as a method to help reduce inequality in the United States, among other goals. Similarly, some have also floated ideas about taxing underlying wealth (net worth) instead of (or in addition to) annual income.
My question: How could such a "wealth tax" be implemented to minimize evasion and non-compliance, ideally without also creating a massive compliance headache for the IRS or whoever administers the wealth tax? Obviously rich people would attempt to circumvent such taxes by trying to "hide" their assets, shield them overseas, etc., so I'm wondering how the law's details could be structured to stymie evasion as much as possible.
Assume for this discussion that a wealth tax looks something like:
Pay 1% on marginal net worth over $10M. For example, a $15M net worth would be taxed annually at ($10M * 0%)+($5M * 1%) = $50,000 / year.
I specifically am NOT asking about the merits or downsides of wealth taxes, but rather how they could be implemented most effectively from an enforcement perspective.
Edit: To make this more specific and less opinion-based, let's focus on how other countries have structured wealth taxes. What have they done? Is there any reliable reporting on evasion or compliance?