alt Hacker NewsIt'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.
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triceratops • today at 5:27 PM
Workers also pay more taxes when (or if) they get inflation-matching raises. Capital paying taxes on inflation gains isn't unfair.
I'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