It may be more complex than this. If long-term were taxed as short-term there would be no incentive for long-term holding. Thus, increasing short term trading w

It may be more complex than this. If long-term were taxed as short-term there would be no incentive for long-term holding. Thus, increasing short term trading which would have some effect on the market. Likely that of increasing volatility. The idea of reducing taxes on long-term held assets makes sense. Also, this would affect everyone. Even retirees planning on selling their home when downsizing to retire.