Yes, inflation causes nominal appreciation of assets, such that you can even be selling at a loss in real terms and be taxed on the gain.
Relatedly, there's a concept of "bracket creep", which can allow politicians to seemingly lower tax rates, but push people into higher brackets with inflation and effectively raise tax rates.
Yes, inflation causes nominal appreciation of assets, such that you can even be selling at a loss in real terms and be taxed on the gain.
Relatedly, there's a concept of "bracket creep", which can allow politicians to seemingly lower tax rates, but push people into higher brackets with inflation and effectively raise tax rates.