Every premise, link and outcome

Walk the argument

1. 1

   Clause 5

   Clause 5 gives Congress the power to “regulate the Value thereof”.

   It starts with the Constitution: Congress controls the value of money.

2. 2

   Prices rise

   The Fed aims at “inflation at the rate of 2 percent”, so the dollar price of what you own rises A2 · moderate support.

   The government aims for prices to rise about 2 percent a year, so what you own costs more in dollars, with moderate support.

3. 3

   § 1001

   Section 1001 taxes that rise as “gain”, counted from cost A3 · stated.

   When you sell, the tax counts the rise as profit, with nothing taken off for inflation. The law says so in its own words.

4. 4

   The question

   The question: is the inflation part of a gain taxable as “gain”? Text 01 says “There is no third construction.”

   So is taxing the inflation part allowed? Gavin says only two answers exist.

5. 5

   Buying power

   Text 01 needs income measured in buying power AU4 · weak support. Black’s (1910): “The return in money”.

   His case needs “income” to mean buying power. The law dictionary of 1910 counts income in money, so that reading has weak support.

6. 6

   The dollar

   Its rival: income counted in “the standard unit of value”, the dollar the law sets AX4 · strong support.

   The stronger reading: income is counted in dollars, the unit the law sets, with strong support.

7. 7

   The answer

   So the words answer it: a dollar gain is income, and the Origination Clause keeps its full effect K-A3 · strong support.

   The answer with the most support: a gain in dollars is income, and the rule that tax bills start in the House still works.

8. 8

   Text 02

   Text 02: the transfer is real BC2 · moderate support, but the clause reaches “All Bills for raising Revenue”, not every extraction BU1 · ruled out.

   Gavin’s second text: inflation does shift value to the government, with moderate support. But the tax-bill rule covers bills, not every side effect, so that step is ruled out.

9. 9

   Not a Tax

   Inflation is neither a “Tax” in the Constitution’s sense nor a “Bill” K-B2 · strong support.

   Inflation is not a tax in the Constitution’s sense, and not a bill, with strong support.

10. 10

    The Court

    The Supreme Court has never ruled on the loop as a whole, only on its parts K-G2 · strong support.

    The Supreme Court has never ruled on the whole loop, only on its pieces, with strong support.

11. 11

    Left standing

    Left standing: a dollar gain is income, so the fix is a Bill to index basis, the cure Congress gave the brackets in 1981.

    Where it ends: the fix is a new law, the same cure Congress gave the tax brackets in 1981.