lol yes there is. If investment income is taxed at 50% (top federal bracket + top state income tax rate) then who in their right mind is going to risk their capital? lol, I know I absolutely wouldn't.
Then what would you do with all your capital? Sit on it? I highly doubt it. You'd either spend it (which is good) or invest it because 50% of more money is still more money.
That is not how marginal tax rates work. I'm also completely fine moving to an inflation based basis system if capital gets the same tax treatment as labor.
