Capital gains is taxed at a lower rate than your first 50k of income.  Because of the lack of FICA if nothing else.  15% is lower than most people are paying on their income.<p>Same with the top tax brackets.  Your 2nd million dollars will be taxed at around 35% if my memory is correct.  If you're making 50k, you're paying more than 35% of your income in taxes. (fed + fica + medicare)