Reply #96: It is considered income, it's just a "special" type of income

[MajorChode]

That's not subject to FICA and is currently capped at a 15% top marginal rate.

The reasoning(if you can call it that) is that corporate income is already taxed at the corporate level (partially) so it shouldn't be taxed at the same rate as wage income. The reality is many (if not most) of the blue chip corporations (which make up the lion's share of stock volume) pay no corporate income tax at all. My solution to that problem is to do away with corporate income tax altogether and tax all equity investment income exactly the same as all other income. The net effect will be higher revenue receipts and the end of the tax loophole that the ultra rich currently enjoy.