[valuearb]

Sorry, confused. I didn’t propose any tax on unrealized gains.

Raising capital gains and dividend rates to ordinary income rates should favor neither, with one exception. Capital gains would need to be indexed against inflation, otherwise in any high inflationary period they could produce effective tax rates over 100%.

And investors require dividends and buybacks, or their is no reason to own stocks. So both will continue and most stock owners will pay significantly higher tax rates on them, partially offsetting their higher dividends and returns.

But you are correct that this will probably lower tax receipts in the near term, but it will also increase investment and R&D, which will help tax receipts catch up over time.

And of it does lower tax receipts it’s also evidence we have been eating our own seed corn, capital wise.