US law requires that investors pay capital gains when they sell a stock. The law makes it extremely difficult for small investors to trade stock as they would have to fill out forms. The tax was 35%. They lowered it to 15% or 20% depending on your income.

The 401 K law allows people to adjust their holdings without having to pay the tax. They only pay tax when they withdraw their funds in retirement.

Unfortunately, the law is used for social engineering. Every seemingly good law will eventually get perverted by the people in power.

!PIZZA