I think the subject says it all. The democrats are interesting in taxing the rich more and the poor less. So why not have interest earnings subject to the same tax structure as if it were straight income?
Where is the downside? Are they afraid it will discourage investment? That seems unlikely, nobody who is currently living off the investment income from a few million or more is going to suddenly decide it isnt worth investing.
With the extra tax income from this change, they could just reduce the tax rates at every bracket slightly to balance it out so the expected total tax income for the country is the same. So Republicans get to claim a tax cut for all Americans who work for a living while still balancing the budget, both of which they failed to do with the most recent tax code.
If there really was any lost investment from this strategy, it should be made up for by more people having money in their pocket at the end of the year to invest.
Am I missing something?