It still won't work unless the whole world agrees to do it simultaneously. A classic game theory problem, the more some countries agree on it, the more benefit to those countries that don't do it.
Because worst case, the rich entity can flee, or renounce citizenship and buy citizenship where the tax climate is more favorable. With the amount of money we are speaking about, you can buy anything. Each and every country has a very fast track to citizenship in exchange for money (and an instant path to pretty much all rights except for voting). So you threaten the wealthy with torture? Unless you do all this by surprise one day all of a sudden, they can and will escape.
$150k buys you a Carribean citizenship + passports for the family of 4.
0% income tax and 0% capital gains tax in Antigua and Barbuda.
365 sandy beaches.
Because worst case, the rich entity can flee, or renounce citizenship and buy citizenship where the tax climate is more favorable. With the amount of money we are speaking about, you can buy anything. Each and every country has a very fast track to citizenship in exchange for money (and an instant path to pretty much all rights except for voting). So you threaten the wealthy with torture? Unless you do all this by surprise one day all of a sudden, they can and will escape.