On first glance that's the case, in practice they clamp down hardest on middle and professional classes. The rich borrow against gains or pay long term capital gains, or just "re-invest" (no profit) into durable assets for their business that hold value longer than they'll be alive.
The scam of income tax is that it's progressive on paper but not in practice.
The scam of income tax is that it's progressive on paper but not in practice.