Monday, January 30, 2012

Tax... man this stinks...

I am not for the Republican Party. You must have guessed that by now. However, I am rather fiscally conservative. You see, I'm not against taxation, however, the principles that currently govern our tax laws are a little bit tricky. For example:

I have 100 dollars. Over a year inflation is 5% and I get taxed %15... I am now effectively down to about 81 dollars, instead of 100 dollars in a year. This system would be fine, if not for inflation. Because the government prints money and inflates the value of the dollar every year, all money is worth less every year. It does not matter whether you have 10 dollars or 10 billion dollars, inflation effects EVERYONE EQUALLY. So I must say that if I had the power to change one thing regarding money in this country, it would be to minimize inflation AS MUCH AS POSSIBLE, if not get rid of it entirely. If that happened people could just keep their money. They would not have to invest just to keep the money they have already. People complain that people who get money from their investments are not being taxed enough because these gains are not taxed at the same rate, but this is actually a case of double taxation by the government. If you have 100 dollars, and put it in an investment so that you can not lose that %5 or more each year to inflation, then the government taxes the money you get out of this investment at an equivalent, or higher rate than the rate of inflation, slowly your money gets sucked away in either case. I say that if the government wants to tax these kinds of gains they also need to STOP PRINTING SO MUCH MONEY! And that is not fair.
So while I think it is MUCH MORE important in the long run to protect trees than it is to reduce inflation, money does matter, and double taxation isn't fair.

1 comment:

  1. amazingly, inflation has only been running at a rate of around 2% to 3% in recent years. I remember back to the Carter administration. Inflation then was more like 8% a year. That did a lot of damage.

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