Right wingers dont appreciate competitive open markets; thats why theyre proponents of the capital gains tax discount. This is a transcript of a letter I addressed to a U.S. Congresswomen prior to the 2010 elections. Respectfully, Supposn /////////////////////////////// Im pleased that you advocate (to whatever extent possible) we receive the maximum economic stimulus from every portion of Bushs tax cuts that the U. S. Congress chooses to retain. I agree that if were reducing our revenue and increasing our debt, we want maximum value for our financial risk. I heard you speak in favor of a 15% tax rate for long term capital gains. Im opposed to special strokes for special folks or the government determining which classification of income should be favored over other incomes. USAs tax discount for long term capital gains reduces governments revenues but it does not increase the net amounts invested within the USA. It induces aggregate shifting of investments to favor one category of investment over another. The incomes of those who nurture and reinvest their efforts and wealth into their enterprises are certainly economically no less worthy than that of investors who take the money and run after some time in excess of 365 days. I'm not opposed to speculation. I'm opposed to government favoring speculators which is not optimum economic policy (if we really trust neutral public markets and free enterprise). Investors are pragmatists. They dont generally spend time discussing or arguing with the financial environments governments create; they simply function within those environments.