A column in the Wall Street Journal, asks the question: Are capital gains so different from earned income that they should be taxed at a different rate? Source: Scott Sumner and Leonard E. Burman, Is It Fair to Tax Capital Gains at Lower Rates Than Earned Income? Wall Street Journal, March 1, 2015. Part 2 What is a capital gain? A. An increase in the price of a stock. B. A profit from the sale of an investment. C. A distribution of profit to investors. D. The increase in capital from one year to the next. Part 3 In what way are capital gains taxed differently than salary and wage income? A. Capital gains are taxed at a lower rate than salary and wage income. B. Salary and wage income is subject to deductibles. C. Salary and wage income is taxed at a lower rate than capital gains. D. Capital gains are adjusted to account for inflation. Part 4 One economic argument for taxing capital gains differently than other income is that investors have to pay taxes on their nominal real gain without an adjustment adjusted for inflation.