Your approach also removes all incentives to work at all. The assets and payrolls would be reduced to zero leaving nothing to be confiscated and distributed or utalized by the government. Everyone would be in poverty, there would be no food, or other goods or services. There have been governments that have tried your approach--the soviet union (gone), china (only afloat because they have begun to adopt capitalist measures), North Korea--the wealthy in those countries have a lifestyle similar to the middle class in the USA.
Free markets are the only proven way to prosperity.