>We could also tax capital gains at the same interest rate as regular income Do we then drop corporate income taxes? One reason capital gains is lower than inc

>We could also tax capital gains at the same interest rate as regular income Do we then drop corporate income taxes? One reason capital gains is lower than income is because the value was also taxed on the corporate profit side. In order to make investment more appealing capital gains is thus set lower to offset the double taxation on the growth. AFAIK many (if not most) do this for this reason (and a few others, like capital gains not taking into account inflation, etc.). It's also why the rich have an effective tax rate about 10% higher than their income tax since they're paying the corporate tax. Here's [1] a CBO report on effective tax rates by income distribution showing this. [1] https://www.cbo.gov/sites/default/files/cbofiles/attachments/effective_rates_0.pdf https://www.cbo.gov/sites/default/files/cbofiles/attachments...