re: #257 BishopX

You do realize that Financial services is a very, very competitive industry right? If there are two investment strategies which promise an equal return but have different tax obligations, then the less taxed option will become the industry standard. A tax on certain types of business will shift investing practices without increasing costs terribly. It also won’t raise much money.T

Your response just made my point. I don’t want the government directing investments like that. I’d rather deal with the occasional risk of severe recession than give government that power. I believe that government is sure to abuse it, and that it will encourage banks and investing institutions to lobby Congress to write the rules to favor individual institutions. Such policies will change the financial sector from favoring business entrepreneurship to favoring political entrepreneurship. That is a better idea. People should instead learn to live with the realities of the business cycle, even when those realities hurt them. Because that kind of massive additional government involvement will make things far worse in the long run.