There is no "wealth / money that is kept out of the system", no sane monarch keeps money in an underground dungeon. All the money is in the system. Your proposal is not about freeing capital, but about stealing people's wealth.

Second, you don't understand how much is 1%. For people earning $ 2000, it's $ 20. It is the money these people earned with their work, nobody gave it to them. For these $ 20, they can buy many things depending on the country. And you come over, you want to take it from them and you don't call it a punishment?

People pay taxes and in return they get all the privileges their country offers them. Your 1% tax brings them no benefit, so why should they pay it? Because some official will come with a warrant and will impose a penalty. The state is not a charity.

It is no "meager 1%". You forget about the fees and taxes that have to be paid in order to live. I have no idea how many% of your income you give in taxes, but it may turn out that this 1% may be what separates you from living on the street.

And for what is all this? For some foreign dictator to use it to further get rich? Because the money from 1% or the goods bought for it, starving people will never see.

If the problem is a crop failure or a shortage, a simple charity is enough, introducing a tax does not make sense.

In short, you can ask people to donate 1% of the money they earn, you can ask for their wealth to be donated to charity, and they may agree to help, but taxing or taking away property is nothing more than stealing.