The tax rarely exceeds 1% because kantons wouldn't rather derive a larger portion of taxes from wealth tax or because any higher rate still flat across all wealth would cause assets that don't have yearly income to be regularly sold to avoid complexity in holding them?
If the wealth tax rate is close to zero, who cares?
The wealth tax in e.g. Kanton Zürich is 0.025%
I'd say that is close to nil when compared to the fact that there is no cap gain tax.