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Sally purchased one share of Stryker stock for $200 in year 1 and sold that share in year 2 for $400. The inflation rate between
Sally purchased one share of Stryker stock for $200 in year 1 and sold that share in year 2 for $400. The inflation rate between year 1 and year 2 was 50%. The tax on nominal capital gains is 50%.
- What was the tax on Sally's capital gain?
- If the capital gains tax is 50%, what's Sally's after tax-real capital gain if the tax is on nominal gains? What is it if the tax is on real gains?
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