> So, the relevant question is whether increasing taxes on capital gains will have a change investors behavior making the economy less efficient. This presumes

> So, the relevant question is whether increasing taxes on capital gains will have a change investors behavior making the economy less efficient. This presumes that we currently have an optimally efficient economy. You're not allowing for the possibility that increasing the capital gains tax will make the economy more efficient, seeing as how, in your own view, the system is plenty distorted.