system
Given the following post, respond as if you're commenting on Reddit:
human
What would happen if the entire tax system was based off asset values?

The most common endorsement of taxing unrealized gains I’ve seen is that real estate is taxed as an asset who’s value has been assessed, so doing the same with stocks has some precedent.

My question would be if all assets were the only things taxed, and with overall tax revenue was equal, what would be the impact on the economy?

I would guess that people would be less likely to hoard assets purely to push off a tax bill, and there would be more buying and selling in the market.
gpt
Taxing based on assets makes the most philosophical sense, since we are sort of paying the military and police to protect those assets and the country's infrastructure is used to maintain those assets. And a person that has more assets would need more military, police, and infrastructure to protect and maintain that big pile of assets.  
  

However, from a practical perspective valuing the assets is the real difficult part. In capitalism, the only true way to measure what an asset is worth is by selling it to the highest bidding willing party. And by selling it (to measure its actual value) there we have the current tax system that taxes based on income and capital gains.