As long as people can handle a down market, I am OK with this. People need to realize the market can go down and will go down. If you can handle the bad times, the market is great.
IMHO, our non-capitalist class would be better served by making the first $500 of INTEREST earnings “tax-free”.
1. There would be no risk of principal loss due to market fluctuations.
2. There would be less risk of “broker fraud” from stock brokers and other scammers.
3. This would encourage folks to open new “savings accounts” for possible future expenses.