which is taxing capital gains at a lower rate than income earned from labor.
Consider - you can be a middle class person, and your salary is taxed at 28% plus 7.65% for payroll taxes.
But if you simply buy a stock, even though it is of a preexisting company with share being traded on the open market, as long as you hold it 6 months your tax rate is only 15% on the income and no payroll taxes.
Corporate executives get much if not most of their compensation in things taxed as Capital gains - stock options, carried interest.
The things the press calls "entitlements" are in fact the basic fabric of the social safety net - Medicare, Medicaid, foo support, Social Security, unemployment insurance.
Why should passive investment be "entitled" to lower tax rates at the expense of the vast majority of us?
I am not an economist, but I would wager that upwards of 80% of what is taxed as capital gains has NOTHING to do with creating new jobs, and thus little to do with stimulating the economy.
So call me a radical. Hell, call me a socialist. I don't mind.
I have a different term to use. I am sane and sensible when it comes to tax policy.
What do YOU think?