Long term gains are 23.8% for high earners. To get an effective federal tax rate of 35% in the US today, a single doctor would need to be earning about $2 milli

Long term gains are 23.8% for high earners. To get an effective federal tax rate of 35% in the US today, a single doctor would need to be earning about $2 million per year. There are several arguments for a lower long term gains rate: - It accounts the effect of inflation. Doctors don't receive their paychecks years after they perform the work, and they expect their salaries to keep up with inflation. - Holding assets for long periods of time imposes risk that other forms of income don't have. Doctors don't typically risk having their paycheck cut in half suddenly. - Progressive tax rates can be particularly harsh on investors, because sales typically come in big lump sums. Doctors get nice smooth paychecks that don't suddenly move them up and down income percentiles per year.