Capital Gains Taxes should be indexed for inflation...

[David Krulac]

On another topic here at BP, there has been discussion of the Professor Robert Shiller comment that when discounted for inflation, real estate value in real dollars is the same as 100 years ago.

Whether or not that is absolutely true or not, shouldn't capital gains tax be indexed for inflation so that an investor did not have to pay tax on the increase dollars of an investment that is due to inflation.

And secondly, wouldn't that be the truly fair approach, so that an investor is not taxed on inflation?

And thirdly, if that were enacted would investors be shocked at how little ( or none according to Shiller) of their "profits" were phantom or non-existent?