They don't like technical traders... http://www.theatlantic.com/business...ding-game-is-causing-the-manic-market/243488/ http://www.theatlantic.com/business...lionaires-pay-lower-taxes-than-you-do/243608/ Quote In the examples above, we were imagining that the investor held the stock for several years, as the corporation's income was taxed each year. As a result, the profit on capital gains should not also be taxed. But what if an investor holds the stock for only days, hours, or even minutes? Now it could make sense to tax the gain. In this case, the investment is speculation, which shouldn't receive the same benefit as investing that contributes to a firms' long-term capital position. Indeed, such short-term capital gains aren't really subject to the corporate income in the same way as long-term gains. it could also make sense to tax short-term gains, because this isn't really the sort of investing the market should want to encourage by providing an ultra-low tax rate. The stock trading game is getting out of hand, so taxing short-term gains -- like those for stocks held less than one year -- at a higher rate could help to discourage excessive trading. Short-term gains are already taxed at a somewhat higher rate than long-term gains, but Buffett is right to imply that they should be taxed like regular income.