[rms]

If you don't tax capital, then only the wealthy will own capital. Eventually the capital starts owning itself and then the people don't even own capital anymore.

Our tax system has to try and fix one of the fundamental flaws of capitalism -- the tendency for the rich to get richer and the poor to get poorer. Without a capital gains tax, this very worst aspect of capitalism becomes even more emphasized, as capital will last forever.

[yummyfajitas]

In what capitalist/mostly capitalist system have the poor gotten poorer?

Certainly, the rich may get rich faster than the poor, but that's far from the same thing.

[fallentimes]

I sort of see what you're saying. But the States' poor now are better off than the States' middle class was in the 1800s. The problem is, this isn't close to true in many other countries.

[kingkongrevenge]

> fundamental flaws of capitalism -- the tendency for the rich to get richer and the poor to get poorer

BS. Riches to shirtsleeves abound. Wealth rarely lasts three generations. Now, there are certain subgroups that seem mired in poverty, but that's another matter. The extent to which the rich have been getting richer and the poor getting poorer for the last 30 years in America has everything to do with the explosive growth of government and regulation, NOT capitalism.

Capital gains should be zero. All wealth creation is driven by savings and capital. Maximized capital investment and the incentives to save, maximize growth.

Income taxes should also be zero, by the way. It is entirely feasible to fund a properly scoped government with excise, duties, and user fees.