sbl, you need to read about AMT a bit closer. Again, you're just reading what you think you already "know".
AMT and Long-Term Capital Gain Not all capital gains get hit, but they do come into play and affect the taxes paid. It's also mentioned in one of the Wikipedia link I gave above.
And then you throw stuff out there that the rich invested their tax savings overseas. You have some documentation for that? Higher tax rates here encourage overseas investing. Is that what you really want?
If it wasn't for the rich, many of the great ideas (inventions) that have come about would just be sitting on paper. It takes large investors with capital to help bring these things to market, putting people to work.
Surely you understand the way that law making works. Bush did not write the tax law but signed it. Many Democrats supported it in the legislature. They recognize a benefit to society of encouraging long term capital investments.
Another principle behind discounted long term capital gains being taxed at lower rates is due to inflation. If someone investes $1,000,000 in 2000 and gets a return of $1,200,000 10 years later, is it really fair to tax that $200,000 gain at the full rate when, in reality, he has suffered a "loss" due to the decline in the purchasing power of their money?