"people make investment strategies based on tax treatment"
Who said they didn't? You are twisting words.
If you think that long term, people invest in a strategy called "negative gearing" and that is to LOSE money for the life of the investment just to reduce personal tax, then it's you that needs an "are you serious"!
Eventually, the idea is to make money, not lose money year in year out forever. Most investors pay money eventually, it's usually only in the early years where costs are higher, and equity is lower.
The government/ and state governments get a lot of tax/fees from this investor activity, so have you also thought about the other side of the coin if it is scraped all together?
