I'm sick of the narrative that poor people are the drain on society. Actually, poor people tend to be very efficient in spending their money; they have to be. Sadly, in America most poor people are working as well. Their poverty stems from being employed not from being unemployed. Poor people don't hoard resources (by definition they can't afford to). Wealthy people are the ones that remove money from the economy. What kind of economy would we have if everyone had the ability to hoard resources and remove large amounts of money from our economy every month of every single year? Well, the answer is a very poor economy as few dollars would ever actually be in active circulation. That pretty much in a nutshell describes the current economy of The United States. The government has been having to inject money into the economy to keep any liquidity and money circulating in the active economy as all the money has been rapidly rising to the top and then taken out of circulation.
Capital gains are taxes on assets held over a year that increase in value and are sold. Capital gains derive from just owning something and usually no "work" is ever involved. Trump refuses a salary as president not because he's kind or cares about the American people (as some Trumpanzees mistakenly think), but because he doesn't want any ordinary income (like the little people make). That may keep him from having to pay millions in capital gains taxes or keep him in a lower capital gains tax bracket. He's wealthy enough that he can afford to not have any ordinary income. The sad reality is a low net worth middle class couple in America may pay a higher percentage tax on capital gains than a billionaire because they have to actually work to be able to afford to live and survive (which means they have ordinary income).
Previous historical capital tax gain rates went as high as 35%. Currently rates vary from 0% to 20%. The more people have previously drained out of society and hoarded (the higher their net worth and wealth) the more taxes they should pay. Basing capital gains taxes on income is unfair to people that actually have to work for a living. Income has very little to do with ability to pay. Income is definitely not wealth it is a cash flow and in this ever changing economy it tends to be more of a temporarily cash flow at that. True ability to pay stems from having wealth (an overall high net worth).
A capital gains tax structure based on people's ability to pay based on their net worth (actual personal wealth they control) would look something like this:
0% Capital gains tax on people worth less than $500,000
10% Capital gains tax on people worth more than $500,000, but less than a million
20% Capital gains tax on people worth more than a million, but less than $2.5 million
35% Capital Gains tax on people worth more than $2.5 million
Does it make any sense that currently a working middle class family could pay a higher percentage capital gains tax on stocks they remove to help put a down payment on a home than a billionaire might pay on hundreds of millions of dollars in gains? The billionaire clearly has the ability to pay more taxes. The only thing they share in common is most likely no actual "work" went into that stock or other asset gain.