Rich people have assets which sit there and appreciate, and when they sell them they usually get more cash out that they put in. I strongly believe that those capital gains should be taxed.

Yes: if you invest in something the value can go down, but I don't think the government should compensate you for that. You should just be careful where you invest your money.

You can claim capital losses a tax deduction up to $3000 per year and it carries over to subsequent years. So this isn’t entirely true.