because investments result in growth, which results in revenue which results in more being taxed in the net.
consider all of these VCs throwing away money on things like uber. would it be better if they just kept it in a savings account (because of no financial benefit of investing)? most investments don't pay off, so you need a push, the push is that long term capital investments are taxed less.
Again, I don't mind VC's being rewarded, I do mind them paying far lower effective tax rates than the average working guy. Income is income. Maybe we have a carve out that says you can make up to the median household income in capital gains and that's taxed at a low rate, but much beyond that should be taxed just the same as if you earned it working.
I'd need to see a convincing breakdown of the numbers indicating that tax incentives make the difference between risky investments being worth it or not worth it. My suspicion is even if capital gains were much higher, there still isn't anything better to do with your money than invest it.
Also pretty sure savings interest is taxed as capital gains.
consider all of these VCs throwing away money on things like uber. would it be better if they just kept it in a savings account (because of no financial benefit of investing)? most investments don't pay off, so you need a push, the push is that long term capital investments are taxed less.