Indeed and why I said that the "standard deduction" should be higher than labor. This means people who do not use the markets as a primary source of income but

Indeed and why I said that the "standard deduction" should be higher than labor. This means people who do not use the markets as a primary source of income but rather as a tool to go from no wealth to acquiring wealth aren't paying taxes on it for reasons you've stated. Or a minimal tax. But once you've become a successful investor over the years and have acquired more and more wealth your dividends are starting to get taxed higher and your proceeds which are now comparable to an income or possibly a primary income are becoming taxed. Because of compound interest and appreciation of capital assets you're being taxed on your new wealth.