Conversation
Notices
-
@graf @sj_zero Same here mate Car insurance prices in UK have gone 58% this year alone.
-
@Dan_Hulson @graf @sj_zero why do you even insure your cars?
-
@sj_zero my mom's car insurance has gone up over 400$ a year. why? not because she's had a ticket or accidents or bought a new vehicle or anything. because auto thefts in the region have exploded 400% in 2 years. wonder what happened
-
Even if taxes don't change, the inflation tax goes up every year for 2 reasons.
First, your wage loses X% of its buying power every year so if you don't get a wage increase you just lost X% of your earnings forevermore.
Second, higher wages are taxed at higher rates due to progressive taxation, so despite having the same buying power on your new wage you're taxed more.
Third, inflation causes nominal capital gains that aren't real. Let's say that you bought enough stock to buy a basket of goods in 1980. If you sell the stock, assuming it kept up with inflation it should buy the same basket of goods. The problem is that the number of dollars it takes to buy the same basket of goods doubled (even if you believe the "inflation has been 2% lie) so the stock doubled, and so now you owe taxes on a 100% gain, even though it didn't actually gain value. In that sense, inflation *is* a wealth tax because the government gets a cut despite your wealth not increasing.
Dan_Hulson
New Janny in Town
:btrfly: anime graf mays 🛰️🪐
sj_zero
All ０７６萌ＳＮＳ content and data are available under the