Holland rolled out a 36% tax on UNREALIZED gains :
(twitter.com)
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Ridiculousness of the law aside, an example where your shares give a 100% ROI in 12 months, but then suddenly lose 80% of their original value in the next 4 months is an insane situation that only usually exists in pump and dump cons.
Using implausible fantasy values is only good for making me suspicious that the real impact is decidedly less convincing.
Everyone has the same tax year end.
The poors and the soon-not-to-be-middle-class get some 10% gain, but to pay it, they need to sell stocks. ALL of them need to sell stocks. So the stock price plummets.
And then the rich buy it up on the cheap-cheap, because all the poors had to sell it to pay their taxes on it, even though they haven't actually made any money yet.
Illiquid Dutch stocks will behave VERY differently if everybody is forced to sell in the same 4 months every year.
I mean ... that's basically the Ubisoft stock.
Jokes aside, Ubisoft's fall has been more of a smooth decline to nothing over 5 years. A slow decline then a fast drop is much more common than the boom and bust reversal of fortunes described above.
https://finance.yahoo.com/quote/UBI.PA/