Subject: Indexing of Capital Gains Comment: Capital gains for assets held long term should be indexed for inflation. As an example of the problem, my father purchased some farm land in 1960 for about $1,000 per acre. The land is now worth about $18,000 per acre. However much of this increase is due solely to inflation. Depending on your inflation assumption, that $1,000 in 1960 dollars could equal $10,000 or more in 2005 dollars, yet he will pay tax on the entire amount. This is not fair and should be changed. I would support indexing capital gains for assets held longer than 5 years over a repeal of the capital gains tax. Dave Mettler dsmfarms@inreach.com |