It would be complex to callculate on individual security purchases and sales though...

Maybe a good comprimise would be to expand the current capital gains tax rate structure so that the tax is eliminated completely if an asset is held long enough:

For example:
25% for assets held 12 months or less
15% for assets held 12-24 months
5% for assets held 24-36 months
0% for assets held 36 months or more

Of course the double taxation of dividends is another problem...

While it would seem to generate tax revenue by doubling the taxation, it actually decreases tax revenue as it discourages the payment of dividends...(And I might add that it encourages stock price manipulation by manangement as the investors put pressure on management to show capital appreciation...which in turn favors payment of stock options to management) and it also favors companies that are highly leveraged...

Most people just don't realize how much effect tax law has on economic activity...

Scott Evil