If you try to take too many eggs out of 1 basket, the person carrying that basket is likely to try and run away. So it’s easier and less disruptive to take a few eggs out of lots of different baskets.
Taxing accumulated capital without exceptions is also guaranteed to screw people over. The man in the OP is a good example: he’s a modest man who many years ago bought a modest house for a modest sum of money. Due to circumstances, that house has now increased in value, making him a wealthy man on paper. But he’s deriving no income from that wealth, since he can’t rent it out because he lives in it himself. So now he’s a modest man, who is rich on paper, who is expected to pay high taxes on his paper wealth, turning him into a poor man who is barely scraping by.
If you try to take too many eggs out of 1 basket, the person carrying that basket is likely to try and run away. So it’s easier and less disruptive to take a few eggs out of lots of different baskets.
Taxing accumulated capital without exceptions is also guaranteed to screw people over. The man in the OP is a good example: he’s a modest man who many years ago bought a modest house for a modest sum of money. Due to circumstances, that house has now increased in value, making him a wealthy man on paper. But he’s deriving no income from that wealth, since he can’t rent it out because he lives in it himself. So now he’s a modest man, who is rich on paper, who is expected to pay high taxes on his paper wealth, turning him into a poor man who is barely scraping by.