Hi Chris, thanks for the question.

the 37% applies on the gains every single year wherever you sell the asset or not.

Say you had $10,000 gains each year for 10 years. After 10 years you would have paid $37,000 in taxes even if you do not sell the asset.

Under the 0.1% tax, it only applies when you sell it and obisously 0.1% is much less burdensome than 37%. If you sold your $100,000 asset after 10 years you’d pay $100… so it still collects more tax from people who can afford to pay it but it’s not as much Of a disincentive. It’s also way easier to administer.

Does that make sense? Let me know if you want me to take another crack explaining the difference.