>>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.
It's not so difficult to correct for inflation- if you need to. In the US, interest income is taxed at the marginal rate (except for some government bonds) despite erosion of the principal by inflation. People still seem to manage.
"... They ne'er cared for us
yet: suffer us to famish, and their store-houses
crammed with grain; make edicts for usury, to
support usurers; repeal daily any wholesome act
established against the rich, and provide more
piercing statutes daily, to chain up and restrain
the poor. If the wars eat us not up, they will; and
there's all the love they bear us."
-- Shakespeare: Coriolanus, Act 1, scene 1
