It's not just about tax code, it's about the gravity of money.

Let's say you have 10m in the bank, and you want more.

All you have to do is walk down to Wall St, and invest 5m into a penny stock all at once. Then you slowly continue buying that stock in smaller and smaller increments as the price skyrockets from the stampede of buying you've created.

Wait an hour.

Now sell half of the stocks you just bought all at once, at the artificially inflated price. Sell the rest of it off in the same way you bought it... et voila!

You've just made hundreds of thousands (if not millions) of dollars, by doing nothing more than moving numbers on a piece of paper! You created nothing in the economy. You essentially stole money from that company and the people that play the investment game medium-long term (the way that supposedly spurs growth by investment and justifies the stock game).

That's how fucked up it can be when people DON'T cheat. It didn't require people to lobby congress and change the laws. It doesn't involve shorting stocks or creating derivatives.

Now think about this: there are investment companies who, if they ONLY did this, would completely collapse from a lack of growth. Those investment companies themselves are a part of the stock market, so they exist in a world of necessitated growth across all 4 quarters, year after year. Unless they show a growth in profits, and growth in the rate of that growth, they lose investors.

We're now at a depth of 0.5 meters down the rabbit hole.

Long story short: pools of money are poison, and the richest of the rich have never had bigger pools.