Since the creation of the fed the dollar has lost 99% of its value.

This means that any scarce desirable asset you have held over the long term has appreciated greatly in dollar terms, even if it’s true “value” remained the same.

If the government were able to tax that unrealized gain they can effectively force you into their failing system by devaluing the currency so much that everyone is sitting on massive gains.

“Hey I know that house has been in your family for 3 generations and it’s the only asset you have, but you owe us 500k or we are going to take it from you😊”

Taxation is already theft but a tax on unrealized gains makes it even more obvious.