"....(which vastly favors the rich who dont receive income via paycheck but rather from investments)....." 
Why is this such thorn in the side of the liberals? investing in the future with venture capital is the live blood of the country. Especially with cost imposed from the government's rule and regulation of opening new businesses and expanding old ones.
In my opinion we need to rid ourselves of this convoluted and corrupted tax system that currently exist. A simplified flat tax system that doesn't allow it to be used as punishment and reward tool based on the political leaning of the individuals being taxed.