Originally Posted by WhiplashDug

There is soo much more to this, there just isn't enough time to get into it... but

The entire premise of the arguments in this thread assume that anyone who has an investment that qualifies as capital gains will sell it because the capital gains rates are low and then just hord that money away in their mattress. I am not sure where this thought process comes from, but personally I've never come across anyone with substantial money who sells off investments to move into cash.

People with money, move assets from one investment to the other -as they know sitting in cash does not grow their net worth. So lower capital gains rates stimulate capital investment as investors move money from one investment to the other. Some of that money then seeks higher risk, higher return investments (ie. venture capital) and thus stimulates economic expansion through new business development.