If the tax code specified that there would be no distinction for capital gains from other income, the taxpayer would have to pay tax based upon a $9,000 gain. I think that result would fall within the ‘insult to injury’ genre.

In an effort at mitigating the inequity, Congress legislated that capital gains would be treated differently from other income.

Is it really an “inequity”?

Why should the investor not have to bear the risk of decline of real value over time?