If you watched Kudlow last night you got a very interesting and real life lesson in economics and how inflation destroys value.
Headline CPI has increased from 2 percent or so to roughly 4 percent the last two years. The "effective" capital gains tax has increased to 36 percent the same time. How can that be ? Since capital gains are not indexed for inflation, if you strip out the illusory gain caused by inflation marking up assets the after tax reinvestment proceeds leaves you with buying power of only 64 percent of the original dollar.