Changes to CGT will not have any immediate impact on the market. Invested capital isn't income until it is withdrawn from a market account at which point it is

Changes to CGT will not have any immediate impact on the market. Invested capital isn't income until it is withdrawn from a market account at which point it is taxed. If investment capital remains in the market and is not withdrawn it isn't income. For example if I make $7 million in the market tomorrow I cannot use that money to buy a $7 lunch until I pull some of that money out of the market into a more liquid account (checking or saving). Pulling the money out of the market is where it becomes taxable income. Changes to CGT may have some minor indirect changes on investment by altering perceptions of investment principle. It may even benefit the market by reducing the frequency of money leaving the market.