Capital gains need to be adjusted for inflation.

TAXING IMAGINARY GAINS

UNREAL GAINS CAUSED BY GOVERNMENT IRRESPONSIBILITY

It is amazing that in today's litigious society that no one has challenged the fairness of long term capital gains that are not adjusted for inflation. While we understand that assets that have a gain, especially those held for a short time do indeed likely have a profit, but gains on assets held for 20, 30, or even forty years old may show an increase in dollar value, but in effect, are actually a loss due the depreciated buying power of the dollar caused by inflated prices caused by government action. 

The average inflation, lets say on asset that cost $1000, could be more or less depending on item or asset, in 20 years is 112% or $2125. so a rise in value of $1125 would actually be the break even amount and that would not include any costs associated with owning that item.

For a 30 year period it is estimated at 147% or $2478, an implied gain of $1478 is actually the break even point.  

For a 40 year period the average rate is 201% or $3010, an implied gain of $2010 is actually the break even point.

While those numbers are revealing the rate in the foreseeable future are going to be far worse, with near double digit inflation rates expected for the some time.

Can anyone argue that this is not indeed actually another fraud caused by the government devaluing the purchasing power of out money and then taxing us on the perceived increase caused by their actions.

Short term capital gains, assets held less than year are taxed at your bracket tax rate 10 to 37%.

Long term, held over 1 year tax rates are up to 20%. but there is no provision for assets held a very long times. these assets should be indexed to account for the cumulative inflation over that time. 

In effect we are being taxed on assets that we held for many years, in effect taking most likely any increase in value that has occurred. By holding those assets it seems the government reaps more of a reward for your having done so, than you.