Tag: taxation
But inflation adjusting is only one of several possible changes. The current tax cut proposal to adjust capital gains for inflation sent me scurrying back to stuff I wrote in the 1970s when all sorts of proposals were being considered to deal with high inflation. What was true then, and remains true today, is that…
Changes to the taxation of capital income can have a big effect. Retirement saving in typical employer plans – both defined benefit pension and 401(k) plans – is tax advantaged because the government taxes neither the original contribution nor the investment returns until they are withdrawn as benefits at retirement. If the saving were don…
