Prove me wrong about tax cuts for the rich.

[werepossum]

"The tax on capital gains directly affects investment decisions, the mobility and flow of risk capital... the ease or difficulty experienced by new ventures in obtaining capital, and thereby the strength and potential for growth in the economy." - John F. Kennedy

All true. But I think at this point it's safe to say that the vast majority of stock purchases are NOT start-ups purchased based on hopes of future growth, but rather existing stocks purchased based on hopes of future price growth whether or not the company its actual valuation. I'm not sure that stock purchases have that strong an influence on growth today. My biggest fear in eliminating the preferential tax rate would not be the effect on new ventures, but rather the depression of our stock market and its effect on making American companies more susceptible to take-over from more profitable foreign competitors.