There is an enormous difference between the mindset of a true owner of a business, whether through public markets or private ownership, and someone who is trying to make a quick buck through trading. Traders provide a liquid market when investors wish to buy or sell and can create opportunities due to their emotional reactions to greed and fear, so I'm not sure about confiscatory rates on short term gains but preferential rates for long term (5+ years) is certainly good public policy.
Has anyone ever understood the dual nature of the stock market better than Charlie Munger? John Maynard Keynes perhaps. "When the capital development of a country becomes a by-product of a casino, the job is likely to be ill-done".
"Capitalism, wisely managed, can probably be made more efficient for attaining economic ends than any alternative system yet in sight, but... in itself it is in many ways extremely objectionable".
At times, there have been preferential capital gains tax rates for periods over five years, although this has not been the case recently. This is a useful listing of historical capital gains tax rates: https://files.taxfoundation.org/legacy/docs/fed_capgains_taxrates-20100830.pdf
There is an enormous difference between the mindset of a true owner of a business, whether through public markets or private ownership, and someone who is trying to make a quick buck through trading. Traders provide a liquid market when investors wish to buy or sell and can create opportunities due to their emotional reactions to greed and fear, so I'm not sure about confiscatory rates on short term gains but preferential rates for long term (5+ years) is certainly good public policy.
Has anyone ever understood the dual nature of the stock market better than Charlie Munger? John Maynard Keynes perhaps. "When the capital development of a country becomes a by-product of a casino, the job is likely to be ill-done".
"Capitalism, wisely managed, can probably be made more efficient for attaining economic ends than any alternative system yet in sight, but... in itself it is in many ways extremely objectionable".
Very informative and classic Charlie Munger. Capitalism is, as Churchill opined about democracy, the worst system except for all the others.
A simpler fix would be to extend the holding period for long term capital gains from one to five years.