You're right. That's a slightly misleading way to put it, and I have revised my original post. My point was that the "default" method of taxation is the same as

You're right. That's a slightly misleading way to put it, and I have revised my original post. My point was that the "default" method of taxation is the same as ordinary income. Long term capital gains and qualified dividends are legally an exception to that rule. Though I don't think it diminishes my broader point.