[bhupy]

The reason why long term capital gains tax is taxed at a lower rate is to index for inflation. Inflation on short term income is negligible. As a matter of tax policy, it is much simpler to reduce the rate than to compute a very large inflation deduction.

> the wealth tax likely never will.

It also requires a Constitutional amendment, because the Constitution only allows the Federal government to levy taxes on realized income (16th Amendment).