That's a dumb system as it doesn't account for the fact that a piece of property's value can change over time. You write a book, you have to declare its value prior to knowing it's value to consumers. If you aren't independently wealthy already you will never be able to become wealthy by writing books, paintings, songs, etc. as you will have to declare their value quite low in order to pay taxes on them. If it becomes popular the publishing company comes along and forcibly buys it from you for the low value you had to put on it because you couldn't pay the tax, then raises it's value far beyond what the author could afford and profits from the movies rights and etc.