[jlefo7p6]

I'm not sure how investing is taxed right now. On the assumption that the author is calling for an existing tax to be taken away from a certain kind of investment:

Under the current tax structure, the author believes that investors are encouraged to engage is overly risky behavior. It is not obvious that reducing taxes on a subset of financial instruments will make the rest of the instruments less appealing. The flexibility of the taxed instruments is not necessarily made up for by an increase in the rewards of the untaxed instruments. Massively increasing taxes on the instruments you dislike seems like a more straightforward incentive system.

(I'm not convinced that choice of instrument divides investors into "good" and "bad" categories, but the author's proposed solution seemed like an easier target.)