To the best of my knowledge, no advanced industrial country taxes capital the same as labor. Labor must go to work to eat. Capital can stay home.
Ha
+1
Cap gains are not ordinary income and your point is well taken. For a person to have cap gains...they did something right many years before or are "trying" to to do something right for themselves and their families. To tax them as ordinary income ...is somewhat counter productive...
Plus...the money ...originally was ordinary income and ordinary income taxes were paid on it ...before it was invested to generate those cap gains. Cap gains..is the tax...on the new dollars the original dollar made.