I think the idea is that investment income has much more wiggle room, which can be taken to extremes, particularly by people at the top with lots of it. Local/s

I think the idea is that investment income has much more wiggle room, which can be taken to extremes, particularly by people at the top with lots of it. Local/state tax can be avoided by officially residing in a state/municipality with low/no taxes on investment income. This works if your only income is investment and you don't need to live near a wage source. Or if you can afford to 'live' there officially without actually being present, and stay wherever you actually choose to spend your time. Throwing in sales tax seems disingenuous, as that is applied the same regardless of your source of income.