[lisper]

No. If I pay you $1 and you get taxed $0.5 you are still $0.5 better off than you were before. If inflation raises you salary to $2 and you get taxed $1, you are still one (inflated) dollar better off than you were before you were paid.

But if you buy a stock for $1 and it goes to $2 as a result of inflation, you get taxed $0.5 on the $1 gain, but your resulting $1.5 has less purchasing power than the $1 you invested.

[lotsofpulp]

Everyone would be in the same boat, so I don’t think you would lose any purchasing power as it is relative.