Why Is Investment Income Taxed Less Than Wages?

Updated
investment income tax wages salaries
investment income tax wages salaries

By Stephen Ohlemacher


WASHINGTON (AP) -- Why do Mitt Romney and other wealthy investors pay lower taxes on the income they make from investments than they would if they earned their millions from wages? Because Congress, through the tax code, has long treated investment more favorably than labor, seeing it as an engine for economic growth that benefits everyone.

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