I was discussing this in a phylosophical context, not tax-code context, in other words, I objected at the term being used as any money made is money earned. :)
Not a right/wrong type of thing at all. I’m very much aware of the tax specifics.
The theory behind the tax distinction is that the medicare, social security, etc. taxes only apply to employee income. That was what it was sold as when enacted. It is a tax on employment wages. When you own stock, that is an investment and not employment income. Definitions matter a lot in law, and they mean different things depending on different laws.