[sailaway21]

Cam is correct. Even the country's of Europe have figured out that a high capital gains rate is counterproductive. While the US rate has come down from historic highs it is still higher than many country's within Europe.

Long term capital gains (over two years) should not be taxed at all! What do we want; people burying their money in the back yard, investing it in tax shelters, or investing in the American economy? Mind you, they've already paid taxes on the money they're investing.

Probably the biggest shock to me as a youth was that I paid taxes on the interest earned in my savings account. It was the start to my economic conservatism. I'm making $1.45/hr at the hardware store and I'm saving my money up for a car, and I'm pinching pennies to do it. I'm filling out my tax return, feeling quite proud of myself for saving that money and that I'd earned a bit on it by way of interest, and I find out the Fed's want a piece of me again! I said at the time, and I've seen nothing to change my opinion in the interveneing years, that this is b.s.. Capital gains taxation is the same thing.