Most of the small business in US are pass thro entities so they pay ordinary income tax rates and also they reinvest the money back into business. They are inhe

Most of the small business in US are pass thro entities so they pay ordinary income tax rates and also they reinvest the money back into business. They are inherently non-scalable business so the owners don't realize wealth by selling the business instead they get it thro the profits from operating the business... IMO, its not ethical that his tax rate is double than that of a tech entrepreneur or a wall street hedge fund guy. My personal preference would be a lower overall rate (25%) with no deductions for both ordinary income and capital gain. For a brief time in US history (in the Reagan administration) this was the case and from what i read it never discouraged capital investment.