It’s a tax on capital and not on labor. Reagan famously believed the tax on capital ought to be higher than the tax on labor. That the capital gains tax is so

It’s a tax on capital and not on labor. Reagan famously believed the tax on capital ought to be higher than the tax on labor. That the capital gains tax is so low explains why the effective tax rate on Bill Gates is less than a person making $75,000 per year in wages.