Clifford Asness urges U.S. to index capital gains for inflation to improve economic sense

Clifford Asness urges U.S. to index capital gains for inflation to improve economic sense
Asness on U.S. capital gains tax

Clifford Asness, co-founder and chief investment officer of AQR Capital Management, has called for the U.S. tax system to index capital gains for inflation.

In a recent statement, Asness described the current approach as ''crazy,'' emphasizing that taxing nominal gains may overstate actual investment income due to inflation. He suggested that if indexing results in a reduction in tax revenue, raising the capital gains tax rate could offset the effect. ''Higher rates but indexed to inflation, perhaps coming to a similar total, makes much more economic sense,'' Asness stated. The proposal aims to ensure the tax code more accurately reflects real investment returns, a topic of ongoing debate among policymakers.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Weekly Top Bonuses
up to $2,500
deposit bonus for all clients
CLAIM BONUS
Your capital is at risk.