“The Dow is at 40,000 but prices are up 20 percent, so effectively the Dow is at 32,000 adjusting for inflation. If you started out 2021 with 32,000 in stocks, and now they are worth 40,000, you DIDN’T MAKE A NICKEL, you merely kept up with inflation.”
Yet when you sell it your basis is the pre-inflation number so you get to pay incrementally more capital gains taxes on the difference in the basis and selling price. So the government wins.
There should be an inflation adjustment factor on the basis number to be “fair.”
BIDEN WANTS TO RAISE LONG TERM CAPITAL GAIN UP 82%.
WILL KILL THE STOCK MARKET