>There's a difference between capital/investment income and labor income and how it's taxed
Of course there is and that's why we need Welfare Reform.
Look back and see who financed the lobbyists who got that put into law.

You won't find many wage earners or small business owners who think that capital gains and certain investment income should be taxed lower than labor income.
The guy (an immigrant from Central America) who mows my lawn during the summer in 90 degree heat for minimum wage might not think so.
My son started his own engineering company several years ago with some capital and a lot of sweat equity.
The business is doing well and he now employs several engineers. All of his income - either salary or any profits the company makes are taxed to him at his personal rate - as what you call labor income.

When you say investment income, you have to distinguish it a bit. If Joe Small Investor buys a T Bill or a corporate bond, Joe pays the same rate on the investment income from the bonds that he pays on his wages - labor income.

On the other hand -
Phil Mickelson (you might have read about it) makes a few million on a quick stock deal using information that he got from a fat cat friend and those millions are taxed at the capital gains rate.

Mitt invests millions in some company in the Cayman islands, and works loopholes so that he pays almost half the rate that the lawn guy, my son and Joe pay.


When you say that many liberals supported those laws you're right.. but what liberals? Barney Frank? Chris Dodd? Chuck Schumer? Nancy Pelosi? Hillary or Bill Clinton? All of them either have massive investment income themselves or are or were in the pockets of the banks.

Yes, we need Welfare Reform.