Tax day. Why is speculation in Wall St casinos granted preferential treatment to honest work?

When I was in college we learned in Econ 101 that four things are needed for production--land, labor, managerial talent and capital. Wall Street is the major marketplace for capital. Without capital there would be additional production. Labor is no more important--and no less--than capital. Taxing capital gains at a lower rate reflects the reality that invested capital is at risk.

The very wealthy always receive preferential treatment.

Three ways to make money basically. One is to earn what you earn and live on that. Two is to hire employees and make money off their work in your chosen field. The third way is to invest your money and let it make more money. The third way is the riskiest but also the easiest of the three paths. The people who manage the investment money have a lot of clout with Congress and since their well being and livelihoods are tied into the success or failure of their clients' money, they are willing to invest time and money to insure the lowest tax rate. Unions are the natural enemies of the money managers since they are competing for the same dollar that private enterprise produces basically. More for the worker less for the investors to invest. When unions, either public or private, are viewed as too demanding or overpaid and over compensated, it works in favor of the investment banking sector. Politicians in office are generally pro-labor or pro- big business depending on their constituent base. Right now it's not an even split especially in Congress where it's decided who pays what in terms of taxes. Since globalization hurts unions and the U.S. manufacturing base world market share continues to dwindle as a result, the unions representing workers have less bargaining power and investment banking representing large shareholders etc. has more political clout. The way it goes. Better campaign financing laws would help but there's little or no talk of that, and increasing tariffs on imported goods would also tend to level the playing field for American manufacturers and create jobs here rather than abroad. Doesn't seem to be a hot topic either. Instituting a gov't. backed, meaningful plan to repair and improve roads, bridges, and schools by American businesses and workers would also be money well spent, imo. In the long run, the country needs to replace manufacturing jobs by creating new industries to replace the ones that have been jobbed out to other countries like China, India, Viet Nam, South Korea, Malaysia, Mexico, etc. Otherwise the gap between the top and bottom will continue to widen and only American business interests and an honest and responsible gov't., free of self serving and corrupt elected officials can intervene and bring some level of economic equality back to the majority of American wage earners. Someone please tell me if I'm wrong about this...trying to be objective.

The money that goes into Wall Street has already been taxed as ordinary income. Investment income helps new businesses get tarted and established businesses to expand. To insinuate that it is not honest work is foolish.

Splendid explanation!!! NO KIDDING! However, isn't the very lopsided distribution of the resulting benefits more than mere coincidence?

I suppose the 'set up' of the situation was some time ago when things were very different. Those that make laws and set up the situation are not as quick to react as those that take advantage of the imbecilities of those that make the laws. The people keep electing some pretty stupid folks to try to protect them from the smart folks. That strategy is never going to work. The lopsided result is more than coincident. Elected officials don't understand the game and ask the very people they wish to regulate to write the legislation for them. How do you think that is going to turn out? If we wish to go with your analogy of the Wall St. casino, it is best to be the house rather than the gambler.

Another first class answer! But Marx says labor takes precedence, because at bottom it's labor that generates capital.

Congratulations on arriving at the real bottom line! Kudos!

Too wordy, huh. Sorry 'bout that.