They get punished by wealth tax because the crooks who implement wealth tax put the limit at some ridiculous point that ends up impacting "normal people". The whole point of wealth tax is to tax the ultra rich, so you could put the limit extremely high like $5M or even $20M and it wouldn't affect anyone except those who can easily afford it. But they don't do that, I assume because they want people to hate it so they can remove it later.

If your point is that it costs money to "move money around" to "save money on these sorts of taxes" you've missed the point of having a wealth tax...