But strangely politicians generally aren't pushing for targeted corrections to reduce those loopholes-- e.g. impugning realizing gains when you take a loan on assets beyond certain thresholds just as currently happens when you create a constructive sale with options trades. When assets are encumbered by loans or as collateral one could force the tax realization of gains at some rate which then adjusts the cost basis. The distortionary effect of this policy would be greatly diminished by the fact that everyone could just choose to not use their assets in this way.

Instead, the are running straight for the full on land grab while distracting people with the details of technical loopholes of comparatively small consequence.