Taxing capital assets by taking large portions of their value destroys value by forcing liquidity events. Think forcing sales of farms, factories and domain names.

I much prefer land value taxes (and similar taxes on non capital wealth like jewellery) and leisure taxes (ideally taxing people for every hour they don't work). Of course these are difficult to administer in practice, but British business rates and US overtime tax discounts effectively approximate this.

> Makes sense IMO, much better to tax wealth than discourage transactions.

It's much, much worse to tax wealth.

If the government forced transfer of ownership %, instead of forcing a sale, it would be not as bad?

Apparently not. Googling, no one seems to actually do it in spite of some politicians talking about it.

It seems quite a bad idea from a practical point of view.

Not so much because it's socialist but it leads to all sorts of extra paperwork for no good reason. Like say you buy some utility company share for your retirement in 20 years and it fluctuates. Do you want to be valuing it and paying tax and then claiming it back when it goes down every year for 20 years or just declare the gain at the end?

Really? How? Show me a country that taxes wealth and is prosperous. Taxing unrealized gains results in owing tax on money you don’t have and makes starting a funded company impossible.