It’s not nuts, it’s actually quite purposefully thought through. Profit gets taxed once at 15-20% in the form of corporate income tax, the taxed again at LTCG tax rates. The combined total is similar to the individual tax rate for high earners.

If you tax LTCG at income rates, then you will just start incentivizing other schemes to return profits to shareholders, which is going to be economically inefficient, harder to manage, lead to consolidated ownership structures, fewer liquidity events for small shareholders, greater inequality, and less prosperity.

Long term capital gains having lower tax rates isn’t feature, not a bug, for everyone not just wealth managers.