ATAX
America First Multifamily Investors, L.P. Beneficial Unit Certificates (BUCs) representing Limited Partnership Interests
stock NASDAQ

I understand your double taxation argument, and maybe should have left that off my original post. However, in your example, the customer received the goods or services they purchased, the company's employees are part of COGS, but dividends are paid out of ATAX profits. Return on Capital is always treated differently than regular "income" produced for work in the same manner. For the reasons I stated. Its a Societal good for people to risk their money in investments, as it drives economic growth. Additionally, its a system that rewards saving rather than consumption. Further, high capital gains taxes rewards tax avoidance strategies rather than replace conventional investments. Taxing investment profits the same or higher than regular income drives a wedge into this system and produces perverse incentives. I believe it is immoral and the consequences at the margin could be huge.

You are correct in its simplest form. If you put ATAX money in a savings account, you pay tax on the interest earned.
Most other examples get more complicated, and for many classes of investment, the strongest point I made is the asymmetric risk argument.
Simple example of an investment in a company through a primary offering (not the norm, I know) - The cash you invest is "after tax income". If you receive a dividend, that money comes from the company's after tax cash flow. If the stock appreciates, its because A) company earnings increased - earnings are measured after tax, of B) cash is retained and reinvested within the company and if those investments lead to the expectation of increased ATAX earnings, the stock goes up.

I understand your double taxation argument, and maybe should have left that off my original post. However, in your example, the customer received the goods or services they purchased, the company's employees are part of COGS, but dividends are paid out of ATAX profits. Return on Capital is always treated differently than regular "income" produced for work in the same manner. For the reasons I stated. Its a Societal good for people to risk their money in investments, as it drives economic growth. Additionally, its a system that rewards saving rather than consumption. Further, high capital gains taxes rewards tax avoidance strategies rather than replace conventional investments. Taxing investment profits the same or higher than regular income drives a wedge into this system and produces perverse incentives. I believe it is immoral and the consequences at the margin could be huge.

You are correct in its simplest form. If you put ATAX money in a savings account, you pay tax on the interest earned.
Most other examples get more complicated, and for many classes of investment, the strongest point I made is the asymmetric risk argument.
Simple example of an investment in a company through a primary offering (not the norm, I know) - The cash you invest is "after tax income". If you receive a dividend, that money comes from the company's after tax cash flow. If the stock appreciates, its because A) company earnings increased - earnings are measured after tax, of B) cash is retained and reinvested within the company and if those investments lead to the expectation of increased ATAX earnings, the stock goes up.