[thenbrent]

At first I liked the idea of market value based taxes and clearly a bunch of HN readers agree with the idea.

The biggest issue I see though is the implication for small projects.

For example, maybe in 1994 you snapped up pizza.com. You could have been using it ever since for a pizza price search engine which gets 100,000 unique visitors per month and earns you $5,000 per month. That's decent income, except the taxes on the domain's market value of $2.6 million[1] would be crippling. So despite using the domain in what most would think of as good way, you couldn't afford to have such a good domain. Now extrapolate this example for the thousands of sites that have a good domain name for a small project.

[1] http://news.cnet.com/8301-10784_3-9912380-7.html

[davidw]

Yeah, like I said, I ultimately don't think it's a good idea: it would add too much friction for the benefits.