Capital gains income should not be taxed at all. It is what is left over after your income has already been taxed. By taxing capital gains, you basically are telling people that you will punish them for saving money, instead of spending it all immediately. It is the opposite message that should be spent. When people save money, they are denying themselves current pleasures in order to accomplish a greater good. Why would you want to penalize them? You need to think about the consequences of your foolish attitudes. Calling the Bush years a "reign of terror" tells readers you are an idiot. Exactly what dire consequences did you personally suffer as a result of anything Bush actually did?