Forget metaphors, here's a real example. You have stock in amzn, say you buy at 3200 a share. A year from now it's 4k a share. 800$ capital gains...you get tax

Forget metaphors, here's a real example. You have stock in amzn, say you buy at 3200 a share. A year from now it's 4k a share. 800$ capital gains...you get taxed on that. It is a terrible tax law bc it is unrealized. What happens when you get taxes on that 800$, then the share drops down to 3300, you sell at 3300, making a REAL profit of 100$? Do you feel fairly taxes at 800$ profit despit having only 100$ profit?