We told you several weeks ago that this is under consideration, and we explained the economic benefits of the move. Indexing capital gains for inflation would simply tax the gains in a manner the better reflects their real value given the impact of inflation. It would also free up more capital to be invested in the productive sector of the economy, which would help ensure that 4.1 percent growth we liked so much in the second quarter doesn’t turn out to be a mere blip.
So how have the media decided to treat this potential growth-friendly policy move? Pretty much exactly as you’d expect them to: