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<p>[QUOTE="medoraman, post: 1358766, member: 26302"]Guy I agree. It is also the singularly most upsetting point of our tax structure. So many people want to "get the rich" I know it won't change, but a large amount of taxes on capital gains are taxes on inflation. Buy PM today, assume it keep pace with inflation, and in 30 years you have about 80% of the value of what you sell as "gains". Its not a gain at all, its inflation, which is a function of government policy. </p><p><br /></p><p>Basically, the government can increase inflation when it wishes to, then simply tax away any returns that go up because of it. Its more complicated, but I always wished they indexed your investment to inflation, then tax any gain as ordinary income. Much more fair, so of course will never happen. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie3" alt=":(" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1358766, member: 26302"]Guy I agree. It is also the singularly most upsetting point of our tax structure. So many people want to "get the rich" I know it won't change, but a large amount of taxes on capital gains are taxes on inflation. Buy PM today, assume it keep pace with inflation, and in 30 years you have about 80% of the value of what you sell as "gains". Its not a gain at all, its inflation, which is a function of government policy. Basically, the government can increase inflation when it wishes to, then simply tax away any returns that go up because of it. Its more complicated, but I always wished they indexed your investment to inflation, then tax any gain as ordinary income. Much more fair, so of course will never happen. :([/QUOTE]
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