If that capital gains tax happens we are going to see a huge sell off of assets. Figure any sizeable asset that the owner had plans to sell in the next year or two is immediately on the market.

If you had a $500k gain on your house you bought 30 years ago it would be worth selling now to save $100k in taxes. Otherwise your cost to carry will be $8k per month.

Lots of vacation properties that are barely making enough to hold will be reevaluated with less profit from gains available.

Any retired person with stocks transitioning into bonds will accelerate that money movement to protect their nest egg.

Anybody sitting on cheap crypto might sell all or part as well.

Basically nobody wants to give the government half their investment income.