| ▲ | bad_haircut72 14 hours ago |
| No because assets hold their worth. Poor people have no assets |
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| ▲ | mothballed 14 hours ago | parent [-] |
| Poor people are hit a lot harder, but rich still have to pay capital gains on inflation even despite having no real change in value. So the rich pay inflation at the rate * 0.2. Poor pay it at the rate * 1.0 (5x the rate of the rich). |
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| ▲ | JumpCrisscross 14 hours ago | parent [-] | | > rich still have to pay capital gains on inflation “Pay” is doing a lot of work there. My house is half equity half debt. The debt gets to be paid off with inflated dollars. And I pay no capital gains on the appreciation. I can, however, tap it for liquidity if I need it. | | |
| ▲ | mothballed 14 hours ago | parent [-] | | Rich people don't tend to have a sizeable portion of their worth tied up in their primary residence (and even then, IIRC there is a cap on capital gains exception), otherwise property tax would turn into a wealth tax for them which obviously they want to avoid. Non-primary residences still require paying capital gains. The inflated value you paid off with debt for a non-primary residence still gets captured as capital gain in the end when you actually want to sell the house for money. | | |
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