It is proposed in this petition that the Federal Tax Code shall be changed to make the time-period break-point between short-term and long-term Capital Gains, five-years, instead of the existing one-year.
Why is this important?
Capital should take a long-term view.
Currently, the break-point between short-term , and long-term capital gains in the tax code is 1 year.
This means that the outlook for profit-driven decisions only extends 1-year into the future, as gains need to be held for only 1-year in order to be taxed at a lower rate.
Institutions suffer when such a short-term view is taken.
If the tax-code were to be written so that the break-point were 5-years, then the institutions would benefit from a long-term view, and the longevity of institutions would be more important than the individuals that profit from them.
