[gamblor956]

No, both labor and investors spend their after-tax money. Labor spends it on living expenses and their after-tax money is gone forever, while the investors spend their after-tax money on capital assets. The difference is that only the investor has a chance to make even more money from his spending. This is viewed as desirable behavior, and so the additional income he could earn from his original pile of money is taxed at a lower rate.