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[QUOTE=Superman;3499808]Temporarily removing the capital gains tax simply allows investors to sell without paying taxes. It does not promote investment. It promotes disinvestment. Except that investors know that, from time to time, the capital gains tax will be suspended.....and they will have their opportunity to sidestep taxes. And so, in that sense, it encourages them to invest.

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I don't want to go down the "R" road of discussion, if U read the above posts you get what I think happened and why. BTW that doesn't make the great majority of Rs happy either.

I disagree with you about the "disinvestment" incentive a lower capital gains tax provides or taxing passive income as income. Why does it need to be a "temporary suspension" do the $$ my money earns belong to someone else? I should be penalized for excelling and being prudent?

The problem with the Soviet Union was there was no incentive to excell, there was no benfit derived from putting out any extra effort. Little or no effort was rewarded equally with maximum effort, so no one put out any effort. That is also the problem with Unions in America and the tax structure, it deadens the steps of people who want to excell. Ask me how I know! Give them an incentive program whereby they gain from their extra effort and watch them run over each other to excell.

Based just upon that, you give me incentive to put money away and I will keep at it. You might say it goes back to the story of ant and grasshopper.