capital gains
history suggests that when you raise the capital gains tax the government collects less money from that tax. and when it is lowered they collect more. this seems kinda strange. i mean, if the same amount of money was made from long term stock sales (the tax base) then a higher tax rate would bring in more tax revenue. not less. obviously, the tax base goes up more than the tax rate goes down. and vice versa. follow? now, i have a choice. i can write a bestselling book and rake in millions of dollars. or i can speculate on the stock market and make millions of dollars. on the former i pay some 38% in federal income taxes. on the latter i pay 15%. gee, lemme think. the book adds something of tangible value to human civilization. whereas me manipulating the stock market to my advantage at your expense really uh doesn't. course this argument only applies to people whose income tax is over 15%. poor folks shouldn't be buying stocks.