It makes a ton of sense if your goal is to "Soak The Rich".
Or to at least appear like that is what you're doing.
Although I'm absolutely sure that all the millions made from insider trading by politicians will somehow be exempt.
The problem comes as some years are good and some are bad.
One year your house/investments go up and then they tax that. Next year it fluctuates down so you take a loss. And so on.
Gains are gains. Eventually you have to sell you house (which is the ultimate goal) to pay the taxes. Actually the goal is to remove capital from the capitalist system by taxing people out of the markets.