1. The "payroll tax" is FICA, which is a "premium" paid for an insurance program called "Social Security".
2. Social Security is funded by a trust fund... which is made up entirely of US Treasuries (eg: govt. IOUs).
3. If someone doesn't pay FICA because their earnings aren't "earned income", then they don't receive the corresponding Social Security that FICA finances.
4. Half of total FICA payments are paid by the "employer"... which 75% of wage-earners surveyed don't realize.
Many of the companies who pay Romney his dividends are also employers, who pay for half the FICA for their employees. Fortunately that's one expense the democrats ALLOW corporations to deduct.
5. Muddy the water all you want, but dividends are not deductable by the paying corporations so they are taxed twice... once at the corporate level and again at the personal level. I'm fine with taxing Mitt Romney on his dividends at his "earned income" tax rate, provided the corporation is allowed to deduct dividends just as they can deduct payroll expenses.
6. The concept of "buy low, sell high", which you discuss in your post, refers to "capital gains", and has nothing to do with the double taxation of dividends as you infer.
7. I'm an economist, and you are a socialist... and that is clearly reflected in our respective posts. The academic quarter is already in progress, or I would invite you to enroll in my class.