It Might Benefit Everybody not Just the Rich
Many conservative financial experts believe a high capital gains tax hurts everyone, not just the rich. They point out the tax currently affects low and middle income taxpayers, especially the elderly, in a far greater way than the rich.
They point out such people have less control over their capital gains than the rich, and that most people who report capital gains do not have a high income. In addition, the wealthy have more means to avoid high taxes than low or middle income people. The wealthy often pay far more on capital gains when such taxes are low than when they are high.
Many financial experts believe that when tax rates are high, businesses are more likely to invest, if at all, in "safe" investments. When rates are low, however, they are much more likely to invest in "riskier" projects. Much more money will be invested in inner cities and disadvantaged areas.
Again, President Kennedy said, "a rising tide lifts all boats."