I don't see it that way.
Care to unpack it for me?
Well, sure, if you tax the unrealized gains, what's the issue with taxing unrealized losses? If there is no bounds to taxation than the whole point of just compensation goes out the window, you just call it a tax. Its a complete attack on property by the federal government, which is the whole purpose.
Of course, I won't get into there is no way of really administrating this and so forth. If I remember right the Saudis tried something like this, which resulted in many of the elites being tortured.
Where is the nexus to the federal government i.e. commerce to where one with property would even be impacted, meaning you had no income?
If you legally tax unrealized gains on non-commerce, than why can't they tax unrealized losses? You'll eventually end up with 0% equity, or could very easily.
Here is an administrative problem... the agencies have now been partially stripped of their regulatory ability. How exactly would an individual determine a corporation which they own stock in which is private is worth? Or is the IRS going to go investigate and assess?
Most of this doesn't make sense which is why basically no countries do it i.e. Banana Republic.
I agree that corporations have way too much power over the people, but that should be handled as a subject on its own.