In this article he examines the claim, which has been publicized in recent months, that the Treasury Department could unilaterally index the capital gains tax for inflation by a new regulation interpreting code section 1012. He concludes, in light of more than seven decades of administrative, judicial and legislative history, that such unilateral action would be invalid.
Lawrence A. Zelenak, Does Treasury Have Authority to Index Basis for Inflation?, 55 Tax Notes 841-845 (1992)
Library of Congress Subject Headings
Capital gains tax--Law and legislation, Taxation--Effect of inflation on