There is no confusion on my part Turtle. My position is very clear and easy to understand if one wants to approach the subject with an open mind.
Let us take three people all of whom place a nice even ONE MILLION DOLLARS into their pocket during the year.
case #1 is Richard Dillard, a professional record producer. He earned his million in wages and salary and his hard work and talent took him to the upper ranks of his profession. He is in the 35% tax bracket and will pay a federal income tax bill of $350,000.00.
case #2 is Wanda Phillips, an investor. She made her million off long term capital gains. Her tax bracket is the preferential 15%. She will pay a federal income tax bill of $150,000.00.
case #3 is Ned Sykes, who does not work or invest. He got his million through inheritance. Because the first 5 million is exempt, he pays nothing - zero percent. His federal income tax bill is $0.00.
All three DID NOT have the one million at the start of the year. All three got their one million during the year. It all spends the same. If you took each of their money and placed it in three stacks of one million dollars each, nobody on the planet could tell you with any accuracy time after time in a test which pile of money came from which source.
But the government knows whose million belongs to who because they put a big label on each and apply preferences and favoritism towards one over the other.
Now Turtle, La, Centinel, Thrilla, and anyone else who can - tell Richard Dillard why he should be happy to pay a tax bill of $350,000.00 on the same amount of money that Wanda Phillips only pays $150,000.00 on and Ned Sykes pays nothing on. And feel free to use the word FAIR all you want in your explaination.