You’re right, this proposed law is really crazy. The idea of taxing unrealized gains is quite problematic. We're talking about buying something for $10,000 and having to pay taxes on its potential increase in value, even if you don’t sell it. It would put huge pressure on investors.
Imagine you have Bitcoin that goes up to $30,000. You would have to declare that gain every year, even though you haven’t sold it. If the market crashes afterward, you’re stuck paying taxes on gains you never actually realized. It just doesn’t make sense!
And who would want to invest in such an uncertain environment? This could push people to sell their assets just to avoid being taxed on gains that could disappear. It goes against the whole idea of long-term investing.
Not to mention the paperwork involved. Keeping track of the value of your assets and estimating taxes every year? It would turn into a real headache. This is definitely a topic that needs serious discussion because it could create more problems than it solves.