Wealth doesn't, income does. If I buy a car and work on it to add $1000 to its value, I've increased my wealth but have not changed my income or purchasing powe

Wealth doesn't, income does. If I buy a car and work on it to add $1000 to its value, I've increased my wealth but have not changed my income or purchasing power until I realize those gains, at which point my $1000 income is taxed (as it should be)