On the contrary, it makes tremendous sense. People can reconfigure their portfolios to invest in stocks with a future, without having to pay a massive tax to the government for the privilege of doing so. Home-sellers don't have to pay taxes if they use the proceeds to buy a new home; it makes even more sense to defer taxes on Americans who sell stocks, if they're doing so merely to reconfigure their portfolios so they'll have larger retirement nest egg in the long run. The result would be fewer people dependent on the government in their old age.
Like all those people who bought Enron, WorldCom, Global Crossing, etc. a few years back? What's the point in cutting the capital gains tax if people don't even have confidence that they will ever see a gain?
If capital gains taxes were eliminated on stock rollovers, here's what I think would happen -- everyone who is a little uneasy about their stock holdings would sell them off, and every penny of those proceeds would be invested in the 10 or 20 largest companies in the world. Or in those companies that are "safe" investments because of their influence in government.
Is this Lawrence Kudlow's idea of a vibrant economy?