Quote Originally Posted by Thailandnotes View Post
Bought a house for 180 K in 1980.
Sold it in 2010 for 320 K. Paid capital gains on about 80 K of the difference.
According to online calculators, the original investment was worth 450 K at time of the sale.
Would have been nice to deduct the inflation and paid nothing.
This isn't about you in particular TN. Just what your post made me think. I guess the point is most people in the coming generation don't even have 1 home, never mind multiple houses. And you already can write off up to $500k in capital gains on your primary residence. Adding the inflation thing only helps people who have second or third homes. And even then, not nearly as much as people who have incomes in the stratosphere.

I guess the point is, the deficit is already sky high, and they're looking to make a new banker loophole and new adjustments to cap-gains that will add trillions more to it. And you know what's gonna happen as well as I do. After they slash rates for top earners and do the largest corporate tax cut in history and exempt bankers from financial services taxes and slash capital gains by recalculating it, they're going to cry, "The deficit is so huge, we have no more money for social security and medicare, we need to destroy them to make ends meet!"

Even the argument that any of that is good for the economy is obvious hogwash. There's no lack of capital looking for places to invest right now. You could start a lemonade stand (with an app) in Silicon Valley and get a bajillion dollars of funding. Everything from real estate to stocks to bonds to anything you can think of is at a record high, while real wages are still dropping. And of course the reaction is to give more breaks to capital, as if that's the problem here. You know who doesn't have it good enough in America? Bankers and people who live off cap gains. Good thing we're redistributing to them.