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That would be the lying part.
Eventually those shares would be sold, or inherited. That income would be taxed at whatever the algorithm dictates.
So, we're back to playing the "algorithm" with what defines income, and what defines inherence, sale, etc of shares.
Sounds like essentially what we've got, just with the handwaving of "algorithm" instead.
It eliminates the picking and choosing of tax brackets. What you're talking about is making definitions. There is no way to mathematically fix that.