Yes, people would still save out of necessity. And maybe people wouldn't take equity over dollars, or maybe they would, but it would be done for reasons other

Yes, people would still save out of necessity. And maybe people wouldn't take equity over dollars, or maybe they would, but it would be done for reasons other than tax policy. The market would have to work harder to prove that it's a good investment. Income vs capital gains taxation: again, the market would have to work harder to prove that it's a good investment. Or to put it another way: "there is NO incentive to invest in equity [without preferential tax treatment]." Then maybe investment in equity isn't actually a good investment in and of itself.