I agree, however the reasoning in this case is sound.
As you prolly know, dollars, already taxed at income levels, are invested in stock that gives capital to companies to hopefully expand and hire more employees.

The lower tax rate on possible gains is an incentive to invest.

Govt. does pretty good, double taxation with the 15% after the investor takes all the risks.

Yes, but income is income. The incentive is to make money from investment as opposed to making money from labor or services. The incentive to invest (lower rate) is a subsidy. If a person making 100,000 was taxed at a lower rate, they would have more money to invest. It is like saying the investment in a company by a millionaire is a more valuable use of money than a middle class person paying for their kids college. Whether a person makes their money from risk or not is irrelevant. Every business is risk. It is not double taxation. You invest $100 and make $10, you are only taxed on the $10.. You have $10 income taxed at 15%. Or in many cases millions of dollars income taxed at 15%

I see your point.
I believe the incentive of the capital gains tax code at a lower rate was to give
incentive to invest long term in our capitalistic system.
Short term gains are taxable a much higher rate as the $$ aren't staying to help growth. Just my simplistic way of looking at it.

Your right, every business is a risk and toget investors $$$ there has to be
incentive for return.
If your labor produces $100 it is taxed at $25. Tax #1. Take the $75 left
and invest it and your taxed again on any gains at 15%. Tax#2.
However you look at it,the Govt. wins twice on your Labor/ Investment. :)

I know what you are saying and I think about it at tax time too. However, based on the way the system works, for a small percentage of the country who are extremely rich, the way they make money for themselves is investments. If Gingrich gets his way, the capital gains taxes will be gone and those guys will make millions of dollars off investments and pay no taxes on it. But a plumber or contractor will pay taxes on their income from a risky business adventure that is arguably at least as valuable to our country and the economy. Doesn't come it in the wash as far as I am concerned.

Can't get into his mind Zimmy, but his reasoning must be with so much
cash sitting on the side line, with the market the way it is, by cutting the
capital gains, the $$$ would flow back into the market and stimulate
the economy?
If that is true, there should be additional tax cuts for the small buiness
man also to help him expand and stimulate the economy as well.
In addition,make 10% cuts in the current Govt. programs, stop the spending and we could start to bring our country back to live within it's means.

Money has flowed back into the market. It was below 7000 in 2009. It is over 12000, which puts it at historic highs except for the peak in 07-08 Money has not flowed into the middle class. Obama has cut taxes for small businesses, but probably could do more. I would want to see a payroll tax cut. In any case, the tax cuts won't mean much. Demand for products and services will. It is also why a tax program that has income taxes from working higher than investment income doesn't make sense. Get middle class people buying and spending and that would help. The economy will finally be stimulated when the housing market stabilizes and consumer confidence grows. 30% of home sales right now are foreclosures. It is killing the economy. Government spending at this time isn't killing the economy. Long term it is a problem. However, almost every economist will agree that a recession was not time to cut spending.

Good points, Zimmy.
Some money has flowed back into the market becasue people have
nowhwere else to turn. Money Mkts pay close to zero, the newer CD's
don't keep up with inflation so if a person needs to save or create income
the market is prolly the only place to go even though the Dow only returned
3% last year. Risky stuff for short term needs.
Long term, good dividend paying stocks should help but will the volume
be there to keep the prices up? Crazy time for savers.
Fed says interest rates wil remain low until at least late 2014.
Great for the borrower if he can get a loan.