Ira Stoll brings it up, which is the impetus for this post. But I've never quite understood the "don't tax capital gains because it's double taxation" logic.
What's so special about financial assets? I've taken my money (which is taxed when I earn it) and spent it on graduate education (not AU, that's covered - but GW). I now own some human capital. I invested in that human capital because I expected a return on it. That return that I earn comes in the form of more wages, which get taxed at income tax rates. What's so special about financial assets that returns on those assets should get taxed at a lower rate? I don't get it. Why is it that everyone pretends capital gains are not part of your return on investment? When it comes to thinking about capital gains taxes. From an accounting perspective the "double taxation" point is really strange. What income isn't from other income?