Well the corporate tax is meant to collect revenue but it's secondary goal is promote certain activities. Mainly, they want to promote job creation and increas

Well the corporate tax is meant to collect revenue but it's secondary goal is promote certain activities. Mainly, they want to promote job creation and increased productivity, which is in theory done through reinvestment. When you reinvest into equipment, the logic goes that the productivity increases and new higher paid jobs are created even though the lower end labor is eliminated or reduced. Increasing capital gains tax would in effect make everyone accelerate the sale of their company before the taxes are effective, so it was a mass liquidation of capital. But, I don't believe it would discourage investment because people would simply tax plan around the capital gains tax. A while back, during Reagan and friends presidency, the personal income tax as well as capital gains tax was more than 35%. People actually invested more into corporations because the corporate tax rates were lower (ironically).