If you own a house for 50 years and sell it for a one-time gain, then suddenly you are taxed as if you are rich...because the gain is "unearned".

I like the idea that short term Capital gains are taxed at a rate similiar to "earned" income, but I think there should be a reduction in tax for longer term gains...

yes it adds complexity, but is it fair to tax someone who has held an asset for many many years through thick and thin, weathering many storms, at the same rate as someone who owned a different asset for a few minutes and turned a quick buck?

Interest, Rent revenue, and other Passive income meanwhile, should be treated the same as "Earned Income".

Or just scrap the tax code and impose a 21% sales tax on everything.

At least then we will all be forced to confront the reality of what Government costs us (every time we make a purchase).

P.S. Us Beancounters can find many ways to justify ourselves no matter how "simple" they try to make the tax code.