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The Federal Reserve creates inflation party so that you can be taxed on nominal (not real) gains


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2024 Apr 16, 7:49pm   110 views  6 comments

by Patrick   ➕follow (55)   💰tip   ignore  

https://boriquagato.substack.com/p/the-road-to-serfdom-is-paved-with


consider:

you buy a house for $1,000,000. 3 years later, it’s worth $1,200,000. but inflation over that period has been 25%. so in real (inflation adjusted) terms, your house has actually lost 4% of its value. you can trade it for less of the overall goods basket than you could have 3 years ago.

but the tax man does not care.

all he sees is “$200k gain” and you get taxed on that.

but what did you actually gain? nothing. in real terms, you lost.

you’re getting nailed with a surcharge for the poor currency stewardship of your government.

they wreck the dollar, you get the bill.




Comments 1 - 6 of 6        Search these comments

1   🎂 RWSGFY   2024 Apr 17, 6:55am  

That's why Prop13 is good and must be protected at all cost - it breaks the scheme somewhat.
2   HeadSet   2024 Apr 17, 6:55am  

Patrick says

all he sees is “$200k gain” and you get taxed on that.

You need a better example. The first $250,000 is excluded from capital gains tax for single filers, with the first $500,000 excluded if filing jointly.
3   clambo   2024 Apr 17, 12:24pm  

The Federal Reserve is not doing it; Congress is.

Congress is giving away free money by the gazillion. For example, 42 million people are receiving food stamps (now called EBT).

I wish they would "inflation adjust" taxes, that would be awesome.
4   NuttBoxer   2024 Apr 17, 12:39pm  

Congress cannot give dick away without a central bank to inflate it. Not understanding this fundamental truth makes it impossible for you to understand the rest.
5   NuttBoxer   2024 Apr 17, 12:42pm  

HeadSet says

You need a better example. The first $250,000 is excluded from capital gains tax for single filers, with the first $500,000 excluded if filing jointly.


The example is fine. It shows what almost everyone routinely ignores about central bank economies. That inflation != wealth. Your assets, debts, earnings, none of it will ever, ever keep up, and that is by design. They want you dead, or poor and enslaved. You can keep ignoring and trying to work harder in a system pushing you ever closer to financial ruin, or you can leave the system for honesty, real wealth, real money.

Leave while you still have a choice that doesn't involve martyrdom or starvation.
6   just_passing_through   2024 Apr 17, 12:46pm  

clambo says


For example, 42 million people are receiving food stamps


They need to take away the cards and go back to literal stamps again. I worked as a cashier at a grocery in a not-so-rich area when I was young for a few years and only 1 time did someone pay with stamps.

It was a bit of a scene too, lots of people staring at them as they fumbled with a long chain of stamps. Nowadays they give them cool looking credit type cards.

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