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Capital gains tax = pay a certain percentage of the profit
This mod = property tax on stocks = pay a percentage of all stocks you own every year whether you sell them or not
It's a great tool if you want to choke capitalism a little and make sure banks make more of the profits and small scale investors make less. Also great to encourage more risky and highly leveraged investments and discourage safer ones (because a safe 1% stock being taxed with this means you get 0% return, but a risky 10% stock still returns 9% after tax). Which is great because once you screw up the market like this and it crashes, you can blame capitalists and put even more draconian measures in place. Invaluable for any self-respecting socialist distopia!