system
Given the following post, respond as if you're commenting on Reddit:
human
CMV: Unrealized capital gains should not be taxed

I’ve been seeing the argument going around that the government should tax assets, instead of realized capital gains, in order to fairly extract taxes from billionaires, and thus, all investors. How can this actually to be implemented though? The value of an asset is speculative and volatile. If I was to be taxed on my stock portfolio, which fluctuates in value every second, would the tax man just tax it at an arbitrary point in time? This just doesn’t seem to make any sense. I could be taxed at my portfolio’s highest valuation and it could drop significantly the next moment…then I’d be screwed, and punished for investing in the economy, which is the opposite goal of any governments’ monetary policy, as the government wants to ENCOURAGE investment.

Anyway, my stance on this is that it doesn’t make sense, but maybe I’m missing something? Change my view!

Edit: Thank you to everyone who responded. What a lively and informative discussion! I’m not sure if I’ve completely changed my mind about the subject, but I am definitely not against it anymore. It seems like it COULD work.
gpt
Firstly, asset based taxes are normal.  Property tax.

Secondly, while we don't know for sure since it's not current law and likely won't be, the wyden plan uses both capital losses and capital gains.  You could also be taxed at your portfolios lowest value, and losses can carry forward and so on. For every time you were screwed you also be unscrewed.