I think you proposed a reasonable option, but a bit imprecise. It's not clear if you advocate for a wealth-based tax, or some type of crossover tax, like a max between an income-based tax and a wealth-based tax. In any case, a lot of people (and especially a lot of startup oriented people, like readers of the HN forum) are against taxes on unrealized gains, which is what your proposal would end up to be.
As for the temporarily embarassed millionaire. I have a different reason to oppose taxing the wealthy. In my native country there's a saying that roughly translates "it's easy to prescribe 10 whiplashes to someone else's buttocks".
I personally find profoundly immoral to wish a category of people to suffer, when you know that you are not in that category. Now, you may say that the rich people don't "suffer" when they pay more taxes, but I don't know that. I believe in the benefit of doubt. As far as I'm concerned, if someone is rich, they deserve to enjoy the fruits of their labor, not to a lesser extent than me. I personally know lots, really lots of people who work much harder than me, and make more money than me. They have chosen to forgo or postpone gratification in life, and I chose not to. I can clamor for them to now forgo their reward, but I simply find that immoral.