Can anyone explain to me why capital gains taxes are taxed differently than income? Why should a blue collar guy have a higher rate than an investor?
In principle, we should tax capital gains as ordinary income, but only after indexing them for inflation. That gets very complicated.
A consumption tax would make that problem go away.
To spur investment.
I know several "blue collar guys" that have plenty of investments. Why do you think capital gains are only available to white collar workers?