Corrected version:
A wealth tax of 1% is equivalent to an income tax of 20% on capital gains.
It isn't, because the ultra rich have no capital gains. They get ultra low interest rate loans against assets so they never have to sell assets and trigger capital gains. Google "Buy, Borrow, Die" if you don't understand this strategy.
With different issues than the ones caused by deferring gains forever through shenanigans.