A proportional wealth tax preserves the Gini coefficient at finite times under homogeneous returns, while a progressive tax acts as a confining potential that reduces inequality at a rate determined by the progressivity parameter.
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From Gravity to Confinement: Wealth Redistribution as Optimal Drift Design in the Fokker-Planck Framework
A proportional wealth tax preserves the Gini coefficient at finite times under homogeneous returns, while a progressive tax acts as a confining potential that reduces inequality at a rate determined by the progressivity parameter.