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.

There are also a lot of middle class people that pay 15% captial gains tax. Does your model of "fairness" include taxing our ( the middle class) captial gains at more than 15%? If not, where do you draw the arbitrary line for paying more than 15% captial gains? $250,000? $500,000, $1,000,000?