3 ms·
It's meaningful because you pay capital gains on nominal increase in dollar value even if there is no real change in value. Inflation is thus a tax on realized
by mothballed 7mo ago
It's meaningful because you pay capital gains on nominal increase in dollar value even if there is no real change in value. Inflation is thus a tax on realized non-gains at roughly 1/5th the cumulative inflation.
- triceratops 7mo agoWorkers also pay more taxes when (or if) they get inflation-matching raises. Capital paying taxes on inflation gains isn't unfair.
- WarmWash 7mo agoI'd argue that's more of an issue with the tax code than a fundamental problem with inflation. In and ideal world we would be able to write off losses to inflation, I'm sure many financial geeks have griped about this before, heh