>>>Because federal income tax is based on income, not wealth.
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>Does this definition of income include "capital gain" which is a major/main source of additional wealth for the already wealthy and is taxed at only 15%? Some of the richest people I know don't bother to pay themselves any income at all these days.

I think you are too hooked up on the pure #$ of capital gain. This # has to be corrected for inflation to arrive at an increase in buying power, which is comparable to an income to be taxed. So a rate definatly lower than the tax rate for income is necessary IMHO.

regards

thomas