I assumed the discontinuity the commenter was referring to here is the >=1 year cutoff for long term capital gains. After one year, all of the gains from the pr

I assumed the discontinuity the commenter was referring to here is the >=1 year cutoff for long term capital gains. After one year, all of the gains from the previous year are instantly converted to a lower tax bracket. You're not required to reassess the cost basis at the 1 year mark or anything like that, so there's a huge (intentional) incentive to hold capital for over 1 year.