Income taxes are paid on income earned in a given year. That is, real dollars. Long-term capital gains are paid on growth spanning multiple years. The cost bas

Income taxes are paid on income earned in a given year. That is, real dollars. Long-term capital gains are paid on growth spanning multiple years. The cost basis is not inflation-adjusted. The latter therefore taxes inflation on assets. The capital gains rate should be lower than the income rate as a consequence. How much lower I take no position on.