That is not entirely true. For instance, from 1954 to 1967, the maximum capital gains tax rate was 25%, while marginal income rates were very high. Yet compan

That is not entirely true. For instance, from 1954 to 1967, the maximum capital gains tax rate was 25%, while marginal income rates were very high. Yet companies paid good dividends (prior to 1960 the market dividend yield was consistently above 3%) Also, much of the investment in the stock market is in non-taxable accounts and not subject to capital gains or ordinary income taxes until funds are paid out.