Limtex, say you are not serious about that proposal, we need the government to get involved in anti shorting tactics? Do you have any idea how deep retrenchment and declines could be without the shorts coming in and creating "buyers of last resort". I think it is enough "punishment" that they never qualify for long term capital gains, though, i would say that this is working in their favor, their decisions take out the tax consequences out of the buying and selling decisions (as long should as well).
Zeev