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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: rayvt ✧☼🐝  😊 😞
Number: of 21942 
Subject: Re: OT Push to index capital gains
Date: 07/10/25 6:34 PM
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Some part of the reason for the lower rate on cap gains is presumably the assumption that there has been some inflation during the hold period,

A big part of the reason for capital gains to be taxed less than ordinary income is to encourage investments. That's partially the rationale for taxing long-term gains lower.

The whole business of a separate capgains rate is silly. It used to be taxed on on 1/2 the gain at the same rate as ordinary income. That was much simpler.

The basis should be indexed by the inflation rate, because the non-indexed rate is just taxing a phantom profit.

But those two reason is probably why they won't index. Because those two things got more tax revenue.
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This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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