"I know all about self employment tax. Probably more than you"
Fuck you and your condescension. I've paid self-employment taxes for nearly ten years now and once upon a time I paid payroll taxes for 5 employees as well. Since I've always prepared my own tax forms myself (unlike you, who, IIRC, pays someone to prepare your tax forms for you), I am in fact quite acquainted with the workings of the tax system and certainly don't need to be instructed on their workings by the likes of you. (and in addition to the employer side payments of social security and medicare, there's another 4 different styles of taxes that employers must pay on their employees in California, on top of all the insurance premiums that must also be paid- I was paying somewhere around 30-35% over and above wages on the various tax slave-rents and mandatory insurance payments back when I had employees.)
"As far as the clerk at the 7-11, his salary is not at risk"
No, it's not. But his or her life often is - something that can't be said by wealthy investors and corporate pirates who sit in their palaces, yachts, and private jets waiting for checks to clear on money they shed not a single drop of sweat for. Anyone who thinks these people should be paying less in taxes than someone who actually *WORKS* for a living in jobs where they sometimes face great risk to life or limb is really sick. I'm no pinko commie, but the American tax system that punishes hard work to reward people with passive income with lower tax rates is truly obscene.
"As far as the clerk at the 7-11, his salary is not at risk and he doesn't pay even 15%. Standard deductions which don't apply to capital gains put him down around zero percent."
A single 7-11 clerk with zero dependents who makes $10/hour and works 40 hours a week will make about $20,000 a year. The personal and standard deductions will knock that down to about $8,000. That $8,000 will be taxed at 10%, plus 7.5% for social security and medicare. Add in sales taxes (more than 10% in some parts of California), car taxes ($200/year for my 10-year old beater that I bought a few years ago for $4K), gasoline taxes (more than $.70/gallon in California), state income taxes, property taxes (which the low-wage earner pays indirectly through increased rents, if not directly), and yes - a lowly 7-11 clerk who risks getting his head blown off at any minute by a robber coming through the front door often DOES face a tax burden comparable to - if not more than - that of some high-flying investor who sits on his ass all day waiting for his interest to accrue.