One thing I think that’s missed here is that the inflation rate isn’t independent of the investment returns. On average, investments generate a certain amount of real returns, so if inflation rises it will tend on average also to raise the nominal investment returns, cancelling out the effect of the inflation-related capgains “wealth tax.”
^Not always true, but true often enough that it definitely bears mentioning.
If you invest in an asset that you expect to have a 0% real return and therefore hand you an after-tax real loss, and then you complain the tax system is handing you an after-tax real loss, there’s something wrong there- is it with the tax system?
One thing I think that’s missed here is that the inflation rate isn’t independent of the investment returns. On average, investments generate a certain amount of real returns, so if inflation rises it will tend on average also to raise the nominal investment returns, cancelling out the effect of the inflation-related capgains “wealth tax.”
^Not always true, but true often enough that it definitely bears mentioning.
If you invest in an asset that you expect to have a 0% real return and therefore hand you an after-tax real loss, and then you complain the tax system is handing you an after-tax real loss, there’s something wrong there- is it with the tax system?