he derives his income from investments that get taxed at the capital gains rate. Everyone else is free to make the same decision, but they don't. They "invest"

he derives his income from investments that get taxed at the capital gains rate. Everyone else is free to make the same decision, but they don't. They "invest" in houses, cars and other lifestyle purchases and then rely on their daily job to provide their income...hence their tax rate being so high The average citizen making $50k a year doesn't have the cash to buy that house and car (or even the other lifestyle purchases). They have a mortgage, a car payment, and a few thousand dollars in credit card debt. You couldn't use the money used to fund those purchases to invest in something that would allow you to draw income taxed at the capital gains rate. You'd need a lot more cash for the amount of investment that would net you enough to replace a salary.