There isn't a specific amount that I'd consider too high. I consider the taxes too high on roughly 3 conditions:
- It's not needed to be that high to support the programs I value
- It starts to appreciably stifle a behavior I don't want to stifle (sometimes you want to stifle behavior, like with cigarette taxes)
- The tax harms the taxed person too much (likelihood is released by prioritizing taxing more well off people)
I've never found "common sense" to be a compelling justification. In this context I'm asking about the negative impacts of short term investments on the
market, not for the individual. I'll do some reading when I get a chance.
I'm not arguing for smushing the capital gains into one bucket; just saying that I think there is room to increase them. Hell, we could even tax short term gains
more than income tax and long term at income.
I would want to see analysis before I signed off on something like that though. I am not an economist or policy maker. I'm just thinking out loud.