Taxes on capital gains and interest decline as inflation rates increase.

Name: Taxes on capital gains and interest decline as inflation rates increase.
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Question

Quizplus · Accepted Answer

Taxes on capital gains and interest do not automatically decline as inflation rates increase. The nominal amount of capital gains and interest can increase with inflation, potentially leading to higher taxes unless the tax system is adjusted to account for inflation.

Taxes on Capital Gains and Interest Decline as Inflation Rates