Presumably, investors sell assets when the potential for future gains is low, or when other assets offer higher future gains. Being forced to sell assets to pay taxes on unrealized gains reduces future gains, disincentivizing investment.
Presumably, investors sell assets when the potential for future gains is low, or when other assets offer higher future gains. Being forced to sell assets to pay taxes on unrealized gains reduces future gains, disincentivizing investment.
The government taking ownership of a percentage of a company diluting your share or putting a tax on a companies sales will also reduce potential for future gains.