Those with means to accrue interest from savings accounts, if the amount of cash is substantial, may live entirely off the interest.
These substantial savings are never reduced, they just grow according to available savings account interest rates and the rate at which the interest is taxed, if at all.
Lowering the rate of tax on these gains in capital were rationalized via the tremendous money that would be used to put people to work, or somehow trickle down to the American work force.
This was a mistake because they are not compelled to lift a finger to trickle squat.
The American worker, conversely, does not have the luxury to NOT invest a substantial portion of the wages we earn in exchange for our labor, back into the economy.
Our tax rates must be less than those who mustn't work!