Heritage on inflation

The Heritage Foundation supports recommendations by the Republican Study Committee, my biggest surprise  this year…well actually pretty predictable. Of these recommendations, there is only one that I think a strong case can be made for, and that is ending capital gains taxation on the inflation of an asset.

End the Capital Gains Tax on Inflation. The bill would index for inflation the cost basis used when calculating the capital gains tax on assets acquired before the end of 2008. Under current law, capital gains are not adjusted for inflation. This counterproductive and unfair policy raises effective capital gains tax rates, forcing investors to retain assets and inhibiting new investments.

But to get me to support that, I would have a condition.  And to the Heritage Foundation, I think it would be very unpalatable.  That condition would be to tie the minimum wage to inflation.   Some states do this, but if the Heritage Foundation wanted economic fairness for all classes of people, not just the investor class and corporations, advocating for small incremental increases to the minimum wage would be a nice step in this direction.

Don’t worry, I am not holding my breath, turning purple, or passing out while I write this.  It is abundantly clear from this web page Minimum Wage Resources that it won’t happen.

-Josh

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