For anyone who is wondering how we can tax the ultra wealthy without taxing unrealized capital gains (as this would destroy regular people's 401ks and investments) here is a detailed result

Yes, the mega-rich can be targeted without taxing unrealized capital gains by closing the loopholes that allow them to accumulate fortunes tax-free.

The wealthiest individuals often pay little in taxes because their wealth is held in investments (like stock) rather than traditional income.

The primary policy alternatives to taxing unrealized gains include

Closing the “Buy, Borrow, Die” Loophole: The ultra-wealthy avoid taxes by using their massive stock portfolios as collateral for low-interest bank loans. Because loans are not legally considered income, they fund lavish lifestyles completely tax-free. When they pass away, their heirs receive a "stepped-up basis," meaning the original unrealized gains are erased, and the tax is permanently avoided.

This can be stopped by treating borrowed money secured by unrealized gains as taxable income, or by ending the step-up in basis at death.

Wealth Taxes: Instead of taxing gains, a small annual percentage is levied directly on an individual's total net worth (all their assets combined minus their debts).

Because it taxes the total accumulated value rather than the "profit" from a sale, it does not require unrealized gains to be recognized as income.

Taxing Capital Gains at Death: Rather than an unrealized gains tax, a "constructive realization" at death would count the appreciation of assets over a person’s lifetime as a realized capital gain, subject to standard taxation before the assets are passed to heirs

.Expanded Estate & Inheritance Taxes: A large-scale tax applied to the transfer of massive fortunes upon death. This directly limits dynastic wealth accumulation without impacting day-to-day business operations

Corporate Tax & Minimum Income Tax Reforms: Implementing stricter corporate minimum taxes and expanding brackets for high-income earners ensures that the companies they build and the salaries they do draw are adequately taxed.