“Adjusted for Inflation, Dow’s gains are puny” observes:
“Many investors realize that stocks have been among the worst investments of the past decade. But they may not realize quite how bad the decade was, because most people forget about the effects of inflation.
“Despite its 2009 rebound, the Dow Jones Industrial Average today stands at just 10520.10, no higher than in 1999. And that is without counting consumer-price inflation. In 1999 dollars, the Dow is only at about 8200 and would have to rise another 28% or so to return to 1999 levels…”
WATCHDOG:
What makes things worse, when sold a capital gains tax is levied on the illusory enhancement in value resulting simply from inflation. The Watchdog also objects to the double taxation resulting from corporate income taxes.
This isn’t an issue of whether we should have higher taxes but, rather, about whether certain taxes make sense.
Growl.
