It is well to remember some basic principles about tax. Its purpose is to raise the revenues which pay for those services which it is considered the Government should provide at the expense of the community at large, rather than at the expense of the consumers of the services. The function of taxation is not particularly to punish people. Squeezing till you can hear the pips squeak is an approach to taxation that can only lead to economic stagnation, and falling tax revenues. That in turn leads to poor government services, not improved government services.
Any taxation is a disincentive to creating wealth, but some taxation is unavoidable.
However taxation should be so designed and levied as to interfere as little as possible with the conduct of trade and industry. The only result of penal capital gains tax rates was to ensure that transactions did not occur. They have never resulted in a significant amount of revenue for the State. That is one reason why it was right to reduce the capital gains tax rates. That is a reason why it would be right to reduce the capital acquisitions tax rates.