The craziest thing about Capital Gains Tax is that we are taxed if the value of our assets rise. But one major misunderstood component of rising asset prices is it is caused in some part by inflation. Effectively gold, realestate and other assets go up in price because they are being priced in a currency that is falling in value due to debasement and inflation.
Capital Gains tax literally taxes us if our currency falls in value, the more the government inflates the currency the more asset prices appear to rise and the more we are taxed. Its a way to take part of a gain that never really occured in the first place. How sneaky is that!
Capital Gains tax should have been scraped after 2008 once it became clear it was now the policy of central banks to print money, and I have a feeling once inflation really starts to heat up there will be a lot of push back against capital gains tax especially CGT on cryptocurrency.
Can anyone cite any exmples in history where CGT was reduced or scraped due to high inflation? Perhaps in the 1970s stagflation era?
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