income tax on traders

[Tin Mervin Yeung <tinyeung@xxxxxxxxxxxxxx>]

Hi, RT,

In equity markets, if the market rises, the holders of equities are
making money and so it is fair for them to pay the income tax. (because
value is being created. ) In derivative markets, however, since it is a
zero-sum game(no new value is being created), the only thing happens
here is the exchange of money (money flows from losers to winners).  Is
it fair for the government to tax the winners without compensation to
the losers?

Can this argument be justified to persuade people to buy stocks instead
of trading futures and options?

Mervin