I hear so many offended when you talk about throwing capital gains in with ordinary income, rather than them being excluded from both FICA taxes, and only paying 15 percent in federal capital gains taxes. Hell, in truth though, these people, usually the very richest few percent, who buy stock, and then hold it for decades, never paying a penny in taxes on the money they've earned, never pay each year. They get to keep the profits, the stocks split sometimes, they get the tremendous advantages of compounding over the years, especially the compounding of the tax money they don't pay all along. I find it interesting too, that interest income is taxed, and I can only surmise that these CD and treasury bonds and bills, are more ordinarily owned by the poor, who usually take more of the less dangerous investments. So, after sometimes decades of living off this compounded government largesse of not paying taxes on the increases of your investments (and that's OK by me, but) I'd say that people who earn money by investing their money in the market should at least have to have their taxes indexed in the same category of federal income taxes, thrown in with the rest, if not having to actually pay more in taxes than people who earn over 360,000 dollars a year. Buuuuutt, that'd be too much like right, to actually try to recoup some of those earnings from the government largesse of allowing them to go untaxed year, after year, after year. By the way, higher capital gains taxes, especially on the higher income people with more stocks, keeps the markets more stable too, and less able to be "churned" by day trading.