In Silicon Valley, the long-term capital gains tax rate is >37% (Federal + State + NIIT). That rate starts at well under a million dollars. And in the US, you aren't allowed to deduct inflation losses and have a limited ability to deduct capital losses, unlike some other developed countries. These losses don't affect labor.

Silicon Valley has one of the highest tax rates on long-term capital gains in the world, even more than almost all "social democracies". When Europe starts to look like a tax haven, the taxes on capital are not too low.