Capital Gains Tax

[Mercenary]

All income should be taxed the same. Capital gains should just be treated as regular income.
As for whether income tax in general is too high or too low, I'd say too high.

[Mercenary]

If anything the capital gains tax should be raised while the income tax should be lowered, although treating all income the same is acceptable as well.

Add in a financial transaction tax and lower the income tax even more while we are at it.