This thirst for money (and the power that comes with the ability to selectively tax and spend that money) by the men and women acting as government is unquenchable. 

As a result, government also moves directly into the investment area and impose various "capital gains taxes", corporate income taxes, "excess profits" taxes, accumulated earnings taxes - and on and on.

When government thus penalizes and increases the costs of of investing, and reduces (or eliminates) the net return of profit to the investor, the tendency to invest and innovate is reduced - and human well-being is not advanced.

To illustrate, suppose for example that a man has been able to set aside (save) $10,000, which he is willing to invest in a given enterprise (either his or someone elses) if he is reasonably certain that he will get back $11,000.

Of course, as we have learned there is inherent risk in investing.  The man may only get back a portion of his original $10,000 investment.  Or he may not get back anything at all if the enterprise fails.

On one hand, the outlook (and the investor's judgement) may be such that this $10,000 investment may very well return much more than $11,000.  Given this, the investor is very much encouraged to make the investment, given a reasonable expectation of significant return that justifies his risk.

On the other hand, with all other factors being the same, if this individual knows that government will impose taxes and confiscate a portion of his return so that he will recieve - at best - not $11,000 but only $10,500 or perhaps even $10,250, he is increasingly likely to NOT make the investment.  The potential for return is simply not enough under the circumstances to risk the loss of his $10,000.