Because the government doesn't have a history of reducing property taxes when house values decline. In Fairfield county, CT many of the local municipalities lef

Because the government doesn't have a history of reducing property taxes when house values decline. In Fairfield county, CT many of the local municipalities left property taxes at 2006 levels straight through 2007-2010 even though real estate was worth less if it were to be sold. Other areas did the same thing. Think about this - I have un unrealized appreciation in an asset, and I am a normal person, the only way I'd be able to pay the taxes on my $10m rock would be by selling the rock. Wealth taxes can force a sale to cover the taxes. Practically, this is not something we want. In fact, most cities have laws designed to help people NOT be forced to sell. If every long time owner of an apartment in Oakland had to pay taxes on their real-estate appreciation, the majority would be forced to sell. Net: Wealth taxes are strongly regressive, and pro gentrification.