Interesting and informative discussion! I suspect one reason a low rate capital gains tax is favorable with the average individual is associated with purchasing and selling a home. If a home appreciates in value and then is sold, the difference between the purchase price and the selling price is taxed as capital gains. If another home of equal or greater cost is purchased within a grace period the tax can be avoided. However, seniors who downsize or move into an assisted living or nursing home must pay the taxes.

One thing that seems unfair to those who rent is interest on a home mortgage is tax deductible. That means that tax payers are subsidizing others to go into debt to purchase a home.

While I don’t approve of federal income taxes, they are probably the only means of attempting to pay for the behemoth our federal government has become. It seems unfair that a laborer could pay a greater tax rate than an individual who receives dividends on stocks. I have to pay taxes on my social security benefits even though I was forced to participate in the program.

Fair income taxes is a complex issue and as such there is probably no simple solution.