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<<<There was no real gain. Being forced to pay CG taxes in the example I gave is simply capturing part of the original capital (there was no real gain) and this fact is unchanged even if CG taxes are paid in inflated dollars.>>>

"This is true of other assets whose price does not keep up with inflation."

Which is why, in part, that LTCG taxes are at rates less than ordinary income and STCG.

If there is no difference between STCG rates and LTCG rates then the disregard for inflation is even worse.

And the problem is exacerbated if LTCG rates are higher than ordinary income and STCG rates.

No one arguing for same or higher LTCG rates seems to want to discuss or account for the effect of inflation.

Regards, JAFO
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