Surely if you have options or stock in an illiquid company where you can't sell it - they are worth zero on a mark-to-market basis, so you dont need to pay tax on it?
If you can easily sell them for a price it makes sense that you pay tax on it.
If only life were that logical. Under the rules as they are today, there are many scenarios where illiquid options/stock have a taxable event. People's finances have been ruined by this. I had a friend lose a house when he sold his company for stock.
If you can easily sell them for a price it makes sense that you pay tax on it.