The intent of any ethically based taxation system must be to tax only real gains and not gains based on inflation and the decline in the purchasing power of a currency. If interest earned is less than the rate of inflation, a saver today faces a loss of purchasing power, and that loss is increased because he must pay taxes on that interest. Likewise, a taxpayer selling his house or other asset may have a large nominal gain because of inflation. And he is taxed on that nominal gain, not on any increase in the actual purchasing power of his proceeds. Thus we petition the president to immediately instruct the IRS to tax only real gains. This could be an urgent matter given the stated policy of the government to create inflation.



