Given the currecny games that the U.S. – based elites are encouraging the Chinese to play, we need to protect our industries that the U.S spent generations developing.

Absolutely true.
link to business.timesonline.co.uk
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"Mr Buffett said that he was taxed at 17.7 per cent on the $46 million he made last year, without trying to avoid paying higher taxes, while his secretary, who earned $60,000, was taxed at 30 per cent.".

If you want my typically neurotic and nutty take on the whole US system (and why would you?!?), here it is:
link to americangoy.blogspot.com
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The MINIMUM tax on earned income is 15.3% social security tax, + one's marginal tax rate. A moderately successful self-employed individual will pay 45% on their income. (between $80,000 and $90,000 income, after that the social security tax decreases).

That's 3 times the tax rate of one who makes their "living" by investments in equities.

There is no distinction for most people between newly contributed investment capital and investment in pre-existing securities, so the tax law cannot really be said to encourage investment, as much as speculation.

For hedge funds, even short-term gains are taxed partially at the reduced long-term capital gains rates.

(It used to be that if one ran a business – described as more than approximately half one's working hours – 1000 hour/year approximately, the IRS construed that as self-employed income and taxed similarly to a plumber. No longer.)

But, the good news is that if Congress does nothing in the next two years, the capital gains and dividends reductions sunset (expire) at the end of 2009, going back to the Clinton era rates and structures.

Of course, if you are a Ron Paul supporter, you wouldn't favor the idea of tax parity for invested income and earned income.

Taxing people more to "give" them government benefits and police the world is not the answer. The answer is less government. Freedom to make your own choices. Thirst for liberty made many colonists revolt against the biggest empire of their day. They understood that freedom is better than oppression.

We need rational, responsive, and competent governance.

Right now we have irrational, unresponsive, incompetent and therefore VERY expensive governance.

Ron Paul's platform does NOT call for tax parity between forms and entities. He advocates for the elimination of taxation on investment.

You should read more.

"Various other taxes also must be reduced. Capital gains taxes are terribly counterproductive, punishing those who save and invest. "

From the Ron Paul website.

Don't go the "know nothing" approach.

I have some close friends that support Ron Paul on the basis of his opposition to the Iraq war and his contempt for Israel (still close friends, we don't open up this topic).

His foreign policy positions are insignficant compared to the great damage that his economic (including his tax position) would yeild.

They are the OPPOSSITE of what the country needs. They destroy the US economy, and in every manner.

The best tax policy is a simple progressive tax plan, comparable to current rates, but gradulally eliminating all itemized deductions except the deduction for state and local taxes (and that replaced by tax credits), with all entities taxed at the same rate structure. (Assertions of double taxation and all. If you want to not be doubly taxed, function as a single entity.)

No juggling what kind of income it is. Parity, based on income.

At least your stated preferred tax policy is better than the current one.