Posted on 02/28/2025 5:49:46 AM PST by dmacg
Given the recent inflation surge, it is time to consider indexing capital gains for inflation. This would do more than any provision in the 2017 tax cut to create an incentive for investing in America. If the objective of the pending tax cut is to stimulate economic growth, there is a strong argument for indexing the capital-gains tax. If this election had any single defining economic issue, it was repairing the damage done by the Biden inflation.
(Excerpt) Read more at wsj.com ...
Yes! Yes! Yes!
This is very much the right thing to do!
Please explain. Everyone loves money, but the reasons given in the excerpt are ‘Rat talking points.
I don’t believe, personally, that a “capital gains” tax is even constitutional, but, if it is, then the government should not be rewarded for mismanaging the dollar. This seems better reasoning than what is given.
The way it is now, if you have a plot of land, which you purchased for $10,000, and you hold it for 30 years, the land value increases because of inflation of the money supply, to say $50,000. The constant dollar value is the same, but inflation has shoved the numbers up.
So when you sell the land for $50,000, you are taxed on $40,000, the supposed income.
However, you have not made *any* income in constant dollars. Because of inflation, you have broke even.
Once upon a time, I did a master’s thesis on a project, taking inflation into account. Taxes ended up taking all the profit out of the project, because it was impossible to recover the actual costs of the initial investment, because inflation created “paper” profits which were not real.
“””””because inflation created “paper” profits which were not real.””””
Which is why gold and silver is not a investment or a hedge against inflation. When you pay the tax you have lost value.
But mining stocks are a investment as they can outpace inflation or not.
They should also index the Industrial Averages.
If it is the right thing to do for capital gains taxes to be
indexed for inflation, then why not all the tax brackets? Does not inflation affect all money, no matter the form received.
Taking money out of circulation with gold and silver actually deprives the market of potential investment dollars.
More on this here:
https://firehydrantoffreedom.com/index.php?topic=1791.msg177130#msg177130
Yes indeed. But better to abolish the da@@ed income tax to begin with. It is, by its very definitions anti/ growth, anti- priority, anti/ jobs, and oppressive.
If it isn’t repealed then at least reform it either a simple fair tax
“Which is why gold and silver is not a investment or a hedge against inflation.”
Just keep your sales below 1099 reporting limits.
If it is the right thing to do for capital gains taxes to be
indexed for inflation, then why not all the tax brackets?
https://www.investopedia.com/ask/answers/111715/are-tax-brackets-adjusted-inflation.asp
Thanks.
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