I guess except for the fact your ignoring the carried interest "loophole" whereby HF Mangers, PE managers and VC managers are able to reclassify fee income as i

I guess except for the fact your ignoring the carried interest "loophole" whereby HF Mangers, PE managers and VC managers are able to reclassify fee income as investment income. Of course, this loophole would not exist if investment income and regular income were taxed the same way. In fact, the more you simplify the fax code the harder it is to game it.