A person who makes his entire income from investments only pays a 15% tax rate on his income.

A person who makes his entire income in a salary job pays 20-30% tax rate on his income.

Granted, few people make their entire income off of investments, BUT those who do are disproportionately wealthy. Additionally, higher income people typically get larger portions of their income from investments.

So wealthy people are paying a lower tax rate than poor people.

FairTax. Solves the problem easily.

Income isn't taxed at all, only spending. And only then when it's over the poverty level. So bascially wealth is all that's taxed.

Thinking about this more, I think there are a couple of plausible explanations.

First, it's in the government's interest to promote investment in the markets. These investments bring in capital to finance industry and jobs. It basically keeps the economy growing. To punish that investment with higher taxes could keep people from the markets.

Second, as you stated, the wealthy are the people who have the most in the market and thus the most to gain in terms of "income" from capital gains. The wealthy are also the people who can afford to have their voices heard by government. Hence the preferential treatment.

I take it you think someone will disagree vehemently. :lol:

Been there, done that, bought the t-shirt :D

Did you at least hold your own? I might need some help. 678hnn77

I'm just eating popcorn, here.

:mf_sleep:

Over the poverty level? What is the poverty level and how to they suggest it be adjusted with inflation?