Re; capital gains ... You are being rewarded for both the risk taken in your investment as well as the fact you hold onto your investment for at least a year.
A risk is not taken in a regular paycheck job. A risk IS taken when you buy stocks or build a business property.
Conversely if you lose money on your investment you don't get to take that loss as a deduction. (except for a max of $3,000 a year)
There are valid reasons for a lower capital gain risk/investment tax rate.
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