Inflation Sometimes Causes People to Pay ________ Capital Gains Tax

Multiple Choice

Inflation sometimes causes people to pay ________ capital gains tax than they ought to,________.

A) less; because tax laws do not typically account for inflation
B) less; because inflation creates the opportunity for a tax write-off
C) more; if they neglect to claim the inflation adjustment that tax laws allow
D) more; because the inflation adjustments in tax laws overcompensate for inflation
E) more; if much of their calculated profits from selling assets was due to inflation