Originally Posted by Scoooter
You don't want to entirely do away with the preferential capital gains tax, but raising it to a point wouldn't hurt enact a prohibitive barrier to investment.
The whole model needs to be restructured. You have huge companies funneling management fees -- which should be taxed at the top marginal tax rate of 35% -- through their investment funds so that they look like capital gains and thus avoid the regular tax rate.
It has become a massive loophole for the very rich and there should be a real debate about what to do with it going forward.