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by lupire 814 days ago
Capital gains taxes are discounted to compensate for inflation. (10-20% vs 30-40%). It's not perfect but it's an estimate.

Also, capital gains are unearned.

1 comments

CPI is a useless metric. It doesn't take into that goods and services are going down in value over time (at around 5% per year), and doesn't include hard assets that retain their value such as housing. It's a trick.

> Also, capital gains are unearned.

On average, capital gains aren't gains at all. They are simply the price of your asset going up, not its value. Housing is a perfect example - it increases in price at the same rate at which the dollar is devalued through supply increase.