> (A lot of cap gains are also due to inflation, i.e. they're fake gains.)
You are a poor investor (or at least a weird one!) if that much your gains are due to inflation -- even under the more aggressive or even kooky benchmarks of inflation they're still not that large compared to broad market returns.
The fact that the fake gains from inflation are taxed is probably somewhat market distorting in that it discourages investment in low risk low return opportunities, but (perhaps due to that distortion) it ends up not being that big of a factor overall.
> (A lot of cap gains are also due to inflation, i.e. they're fake gains.)
You are a poor investor (or at least a weird one!) if that much your gains are due to inflation -- even under the more aggressive or even kooky benchmarks of inflation they're still not that large compared to broad market returns.
The fact that the fake gains from inflation are taxed is probably somewhat market distorting in that it discourages investment in low risk low return opportunities, but (perhaps due to that distortion) it ends up not being that big of a factor overall.