I think it was a Cory Klippsten tweet that enlightened me into understanding that Capital Gains Tax is a tax on anyone who manages to beat #inflation.
He who issues the currency mandates that his debasement be borne by all.
(Except those lucky few who are rich enough to never need to realize their capital gainsâŠ)
You donât have to beat inflation to have to pay cap gain.
Very good point. Even if the value of your asset increases slower than the rate of inflation, youâre on the hook for CGT.
By âbeatâ inflation I meant hold anything that stores its value better than holding the currency itself.
Theyâre saying âif you donât suffer the loss of purchasing power then you have made a âgainâ (in nominal termsâŠ) and you owe us.â
