[Don]

The typical argument against a capital gains tax increase is that it will stiffle investment and thereby reduce revenues in the long term. But would the increase in services from the government stimulate the economy and offset this? What if the tax is only on the personal gains of the super rich, so as to not affect the broad base of stock purchasers or the gains made by mutual funds? The personal income tax of the rich is 35% so increasing the capital gains tax from 15% to 20% would still make investment very attractive for these people. Whereas those in lower income tax brackets could be exempted.