I think it should be taxed the same as so-called "actual work." That's a pretty loaded phrase, anyway. For example, let's say that someone's house is now worth $50,000 more than when they bought it. That is a $50,000 capital gain. Sounds like you don't consider that income from "actual work."
However, that's not taking into account that maybe that homeowner busted their balls working 60-hour weeks, or had the discipline to spend wisely and save enough to own a home rather than blowing it all on booze and boats.
Using a phrase an ambiguous as "actual work" strikes me as coming from someone with class envy. How do you even define "actual work?" Physical work? Mental work? Smart work? Should someone that works in a physically demanding job receive better tax benefits than someone that "only" had to work behind a desk all day?
I presume that my retirement income will be considered "capital gains", and I can assure you that the effort involved in creating those future gains is the direct result of "actual work."
I understand that no where in your comment did you imply that capital gains should be taxed at a higher rate than income tax. I'm of the belief that if you're going to have an income tax, ALL income should be taxed at the same rate, regardless of source. Now, whether or not an income tax is the best form of taxation, that's a whole 'nother topic!
I must be more tired than I thought. After reading the above in "Preview", it's kind of a rambling mess. Oh well, I'll let it stand as is :)