In Silicon Valley, the long-term capital gains tax rate is >37% (Federal + State + NIIT). That rate starts at well under a million dollars. And in the US, you aren't allowed to deduct inflation losses and have a limited ability to deduct capital losses, unlike some other developed countries. These losses don't affect labor.
Silicon Valley has one of the highest tax rates on long-term capital gains in the world, even more than almost all "social democracies". When Europe starts to look like a tax haven, the taxes on capital are not too low.
Do we suddenly care about the labor incomes of wealthy people in SV? Because the comparison was with the middle class labor taxes, which are considerably less. And as was previously noted, capital has risks and costs that labor does not.
Silicon Valley has one of the highest tax rates on long-term capital gains in the world, even more than almost all "social democracies". When Europe starts to look like a tax haven, the taxes on capital are not too low.