No, because we are discussing income tax and exemptions are unnecessary and irrelevant unless proven to be not so. Taxing all income to get the country out of a financial hole, is the aim of the legislation and I see no reason to exempt certain types of income, and not for reasons of fairness but for the essential reason for the tax: revenue collection.

I don’t believe that maximum benefit to society would come from giving the wealthy a lower tax rate. That’s just intuitive, but I would need some convincing, The wealthy tend to horde money an take it out of circulation and that is not good for the economy.

Investment is spending money, or wagering it on a future outcome. My proposal does not tax investment at all, only the profits that come from it when they are realized.

You seem to believe that the economy will be hurt because the prospect of paying tax on profits will reduce investment in production. That money will have to go somewhere else. Wherever they put it they will pay the same tax on any income it earns, so they will put it where they think they will make the most: just as they do now.

They will only be trying to beat bank interest after tax – and that does not require them to make three times bank interest before tax.