There is a difference between being able to write off losses, and the rate at which gains are taxed. Not to mention much of that capital in fact > 90% of it bel

There is a difference between being able to write off losses, and the rate at which gains are taxed. Not to mention much of that capital in fact > 90% of it belongs to a very small number of people who are not risking a thing. If you know that 30% of your investment will pay off and that payoff will more than make up for your loss, and you invest maybe 5-10% of your assets on that. You are taking virtually no real risk whatsoever. Employment can be lost, discretionary income is limited, and usually the income is barely enough for you to get by after all the costs of things like retirement are accounted for.