The point is: Buy at 1K Hold while value goes up to 10K Tax on wealth at 10K (Next year) Tax on wealth at 20K ... (N years later)

The point is: Buy at 1K Hold while value goes up to 10K Tax on wealth at 10K (Next year) Tax on wealth at 20K ... (N years later) Sell at 1K With a liquid asset like stocks, it is at least possible to pay the tax by selling part of the stock, and you could get a credit in future years for capital losses. But what if the wealth is your elderly mother's home? Or the family farm or small business? It's really hard to sell part of those things to pay a "wealth tax" every year.