No. of Recommendations: 8
I strongly believe that unearned income should be taxed at the income tax level, and this includes almost all "long term" capital gains from stocks. After the IPO or Secondary Offering, investing in the stocks does nothing for the company and is just another form of gambling. I don't understand why they shouldn't be taxed as income. To tax these at less than income, is just a gift from the government - welfare for the wealthy.

I assume you mean taxed at the "ordinary income" tax rate. If so, you should be aware that the empirical evidence makes a compelling case that different types of taxes have different impacts on economic growth, and taxes on capital income are extremely damaging to economic growth. Highly progressive personal income taxes are also very destructive to growth.

For more on the relationship between taxes and economic growth, see this post:
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