Replying to Avatar Dr. Bitcoin, MD

Suppose you buy something for $100 and sell it for $120 later. You pay tax on $20.

But what if the $120 buys less than the $100? We do we pay tax on our lost purchasing power?
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Entropy 1y ago

All I was able to find from a quick search was a write-up from a think tank on the topic from 2018. Lots of good argumentation provided.

https://taxfoundation.org/research/all/federal/inflation-adjusting-capital-gains/

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Dr. Bitcoin, MD 1y ago

Interesting. AFAICT, the government has merely assumed the authority to tax nominal gains, but this is contrary to what the constitution says in the amendment granting the federal government unequal taxation power on income.