> Income from capital has a low tax rate in the US (and many other countries) because you can deduct neither losses due to inflation nor losses due to risk, both of which are substantial for capital income but non-existent for wage income.
You are incorrect on both of those, the risks are obvious.
If you wage/salary does not keep up with inflation, you lost buying power due to inflation.
If your employer goes out of business or your industry suffers a downturn, you may be laid off and lose your income. This risk is highly concentrated due to most people only having the one job.
Wage earners are exposed to all kinds of risk.
Also, equities go up when there’s inflation and if you hold bonds to maturity, all you miss out on is potential interest income in an inflation event. Rents go up with inflation. Cash and cash wages have the highest inflation risk.
You are incorrect on both of those, the risks are obvious.
If you wage/salary does not keep up with inflation, you lost buying power due to inflation.
If your employer goes out of business or your industry suffers a downturn, you may be laid off and lose your income. This risk is highly concentrated due to most people only having the one job.
Wage earners are exposed to all kinds of risk.
Also, equities go up when there’s inflation and if you hold bonds to maturity, all you miss out on is potential interest income in an inflation event. Rents go up with inflation. Cash and cash wages have the highest inflation risk.