How do you respond to this Yahoo comment regarding short/long-term capital gains tax rate?

Because the government wants to encourage savings.

Because the money being invested has already been taxed before?

Available capital to corporations is a very good thing for the economy.

Don't and feel much better about your retirement than this person.


Also the reason imo is investment spurs the economy. The government wants to incentivize investment

The rich write the laws for the rich.

To encourage investment.

And the commenter used teachers, welders, and police officers as examples, but I don’t think he realizes that teachers, welders, and police officers invest their savings too. And they are also thankful for the lower capital gains taxation rate.

It’s not just rich people. It’s good for everyone.

quote:

---

The rich write the laws for the rich.

---

So only the rich get taxed at a lower rate?

You'd have to argue that short-term trading has some value to the system that wage-earning does not. Helping to properly allocating capital via instantly-updating price signals could be one argument in support of a well-functioning market.

Or, that income taxes are preferred because they're a more stable form of govt revenue. If they are, which I doubt.

Hard to think of a third option other than one group having more political influence than the other.

1) its already been taxed as income
2) it has greater impact on the economy and should be encouraged.
3) savings and investment are good for people and should be encouraged.

The sheep are gone. Just let them wander.