...a small investor who earns a nominal yield of 1% and pays a 20% marginal tax rate, while the rate of inflation is 3.5 %, actually ends up paying a real tax rate of 370%. For example, an investor buys a $100,000 CD, earns $1,000 in annual interest, pays a tax of $200, and incurs a loss of $3,500 in purchasing power on the invested principal. Total (nominal) income is $1,000; total real tax (nominal tax plus inflation tax) is $3,700.This expropriation of private wealth is not accidental. (emphasis added)
Inflation is merely an orchestrated stealth tax, one that would be grossly impeded by a sound monetary policy (such as a gold standard). And now we've reached the end game, where even this manipulation and debasement can't supply the ravenous appetite of government, while at least appearing to preserve the 'American Dream.'
No comments:
Post a Comment