Government influences economics with policy. It doesn't create it and control it, the government is not analogous to the economy. It's just tax is a powerful influence.

Risk taking is just a part of business. It's not like you're deciding whether to leg it across the road or wait for the red light. It's more like if you don't leg it, the opportunity might be lost. Risk in the business sense is not the same as risk in the sport sense. You don't want risk in sport, avoid skiing. No loss to anyone, right? It's not like skiing is how we earn our living and trade, is it? It's not like skiing props up our very existence as a species. Economics does.

The risk is that even if you have a great idea, someone else is very probably already doing it better. Even if you work extra hard, someone else is working harder. You're always in competition, and if you're outcompeted, you lose, and so do your employees. We could attempt to disincentivise being outcompeted, but that seems a bit too ruthless, even for balls out capitalism. And if CGT is too high, then being outcompeted by global rivals is inevitable.

We're in competition with other countries who set their own tax rates. We have to take into account those rates, provide a competitive economic environment for rich wankers to invest and create jobs. I know we all seem to hate rich wankers, but it was a rich wanker that created the company I work for. Rich wankers are an important part of a thriving economy. And just because CGT brings the % down, people who are paying it are still paying more tax in £ terms.