Thanks. That makes sense.
I didn't realize that income for professional investors was considered capital gains. I never even thought of it and assumed they derived their income from the fees they charge their customers. I reinvest my dividends so I have not had to deal with that yet.
I didn't realize that income for professional investors was considered capital gains.I'm actually talking about individual investors. But it's basically the same either way. The money eventually ends up in a real person's hands and when he spends it he would be taxed under the FairTax so he needs more nominal return or his real return declines.