I have a pretty complex tax reform, but one that might work

[jmowreader]

9. The capital gains rate is definitely worth addressing

The theory behind the capital gains rate is sound: if you risk your money helping a new business get off the ground by investing in it and leaving your benjamins in over the long haul, you should be rewarded for it with a lower tax rate. (Oh...it is a LONG TERM rate; you must leave your money in the investment for at least a year to be eligible for it.) Right now, the capital gains tax is primarily a tax cut for rich people who can afford to wait two years for their paychecks.

I would reduce the use of the long-term capital gains rate to one instance: securities bought directly from the issuer using all your own money rather than as part of an Incentive Stock Option deal, and held at least two years. If I buy Adobe stock from Adobe, Adobe can use my investment to grow its business. If I buy it from John Smith, he can use my investment to buy stock from another stock player.