My argument would not be that it would dissuade investment, but rather limit the ability to achieve class mobility in the United States. It's near impossible to move up an economic class without investment. You can only get so far by saving alone (and it really isn't that far if you are fighting inflation without any return on that cash).

But now if you tax the hell out of that vehicle, then it limits the ability to move oneself up even further.

Everyone talks like it is only the rich that invest. This just isn't true.