Capital gains and dividends should not be taxed at the same rate as ordinary income. With capital gains doing so would really hurt the economy because there would be a lot less incentive for investors to risk their capital. Capital I might add that most often would have originally been taxes already at some point. With Dividends they are already double taxed in that the corporation pays out the dividends in after tax dollars, and then the individual also again pays tax on the money received in the form of a dividend.

The answer is less spending because we have a spending problem in the country, not a revenue problem. The solution to that is not to squeeze the investment capitol.