Sweden cut the wealth tax, and got a very high startup to capital ratio; but a rapidly rising wealth gap as a consequence.
That wealth came from the local economy so it's reasonable to think it should return. But in practice there does not seem to exist any good approaches to do so.
> A 2011 study by Trabandt and Uhlig published in the Journal of Monetary Economics estimated a 70% revenue maximizing rate, and estimated that the US and most European economies were on the left of the Laffer curve (in other words, that raising taxes would raise further revenue). A 2005 study concluded that with the exception of Sweden, no major OECD country could increase revenue by reducing the marginal tax rate.
That wealth came from the local economy so it's reasonable to think it should return. But in practice there does not seem to exist any good approaches to do so.