The Capital Gains Tax and Inflation
August 13, 2018
Accounting for inflation would tax the increase in the real purchasing power of an asset rather than the increase in value that reflects overall rising prices.
Tax Policy
Inflation, the rate of change of prices, is very unpopular because it erodes purchasing power. Our posts explore the different causes of inflation and its economic costs; the difficulties associated with measuring inflation over time; the policy tools available to combat high inflation and their limitations; and insights into how inflation differs across sectors of the economy.
August 13, 2018
Accounting for inflation would tax the increase in the real purchasing power of an asset rather than the increase in value that reflects overall rising prices.
August 6, 2017
The Federal Reserve Bank has persistently undershot its inflation target of 2 percent. This level of low inflation is puzzling, given the low unemployment.