Because the policy will bankrupt founders. Imagine you're the founder of NFLX and you held $1 billion worth of stock at the peak last year ($690 / share) The

Because the policy will bankrupt founders. Imagine you're the founder of NFLX and you held $1 billion worth of stock at the peak last year ($690 / share) The IRS says you owe $300 million (30% of your unrealized gains) Fast forward to spring 2022. The stock has crashed to $186, your shares are worth only $270 million but you owe a $300 million tax bill. Not to mention the impossible situation this creates for corporate governance and the general functioning of a business when founders / board members are constantly forced to divest and therefore no one can know who will even control the company from quarter to quarter.