Capital gains should be taxed HIGHER than labor.

[Coyote_Bandit]

109. Money does die

Some people are solely dependent upon the income generated by the assets they have. Those who are disabled or otherwise unable to work, for instance. That would include those who are born with disabilities but have funds because a parent or family member made financial provision to care for them. It would include those who are badly injured through the negligence of others (i.e., accident victims and injured workers). These are some of the weakest members of our society. They often do not have the ability to replace the funds they spend. Yet you want them to pay a higher rate of tax on their capital gains tax than you would pay on income you earn from your job. Not only are they victimized to subsidize our society those who voluntarily provide for them are discouraged from making the effort.

For some such income is a necessary supplement to other income. Retired folks. Social Security was never intended to be the sole means of support for its recipients. It was intended to supplement other income and assets that had been saved for retirement. Again, you want these folks to pay a higher rate of tax on their capital gains tax than you would pay on income you earn from your job. Such a tax scheme would motivate workers not a save for their retirement.

For some, capital gains result from the sale of a business asset. If the funds are invested back into the business and the business continues to generate income and employment then why should those funds be taxed at a higher rate than those you earn on your job?

For some, investing their money and using money to generate money is their employment - and capital gains represent the earnings of their labor. If they assume that risk and responsibility rather than employ the services of a money manager or broker then why should the gains of their labor be taxed at a higher rate than those you earn on your job?

Not everyone who pays capital gains taxes is rich. Not all those taxes are generated by playing the stock market lottery. Not all the sales that generate capital gains are even voluntary chosen sales. Capital gains taxes can be generated by sales forced by eminent domain actions.

Capital gains should be taxed as income. Taxes on income should be progressive. And as far as I'm concerned there should not be any available tax credits or deductions which might reduce tax liability.