This is a false dichotomy. Laborers could just as easily invest in job-creating endeavors as passive income earners. All taxes cause economic drag, not _just_ business and investment income taxes. The economy includes every participant, and laborers are not an externality.

I'm sorry, I don't follow. Yes, people who are labourers could also somehow creating funding pools that are big enough to start companies, but so what? That doesn't negate the fact that they will be disincentivised to do so by a tax on investment income.