Subject: Re: OT Push to index capital gains
However it would probably also make sense to increase the capital gains tax rate at the same time. Some part of the reason for the lower rate on cap gains is presumably the assumption that there has been some inflation during the hold period, since in the olden days it took years for something to go up in value an appreciable amount.

Indeed. The gains should be indexed to inflation, and the after-inflation gains should be taxed as regular income.

Elan