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> Why are you calling it investment revenue? Fair, will edit to make capital gains. It's late, tired -_- > You are also adding inflation as a separate line it

> Why are you calling it investment revenue? Fair, will edit to make capital gains. It's late, tired -_- > You are also adding inflation as a separate line item. Wow. Inflation is a separate line item and it's effectively a tax. Since 2000, the dollar has lost >35% of it's value, i.e. you can purchase 35% less. They've also changed the way inflation is calculated in that time, it's likely even higher. As an exercise: If you gave someone land, but every year took x% of it -- they'd call that a tax. > You are being penalized because you aren't paying attention to the market and somehow doing the most inefficient things. Not really sure what you mean, if it's regarding taxes, I was pointing out how I could be paying 60%+ in taxes. I know there are rebates, discounts, etc but (A) a lot of people don't know these and (B) when you earn enough that disappears. The general point was 60+% taxes is real.

vmception 5y ago
Yeah we got that, anyone that talks about inflation that way is talking about it that way. As it not something you pay to the state, why not add your healthcare premiums while you’re at it. If you have assets look into charitable contributions. You can donate a portion highly valued illiquid business interests to any charity that will take it and reduce your own taxes for years.
- throwaway3699 5y ago
  Why shouldn't inflation be considered a tax? It's a major reason for lack of social mobility, i.e. keeping the poor poor without them even knowing it. The end result is the dollars end up in government pockets, so what's the difference?
  - vmception 5y ago
    Inflation has a mixed effect on the governments too. Municipal governments are affected the same as you are. And the federal government which issues the currency is also mostly adversely affected while marginally helping it (and all borrowers) defer paying off its debt. The additional money in its coffers is from its own creation* and doesnt help it purchase more (for long) as it has the same purchasing power and liquidity in the global market. Its revenue sources, which are mostly tax these days, are distinctive from inflation. *us treasury issues USD bonds, fed buys USD bonds from everyone including the us treasury creating new USD at the moment of transaction. Sometimes the US treasury is the recipient, other times the other investors are
imtringued 5y ago
>Inflation is a separate line item and it's effectively a tax. It's not a tax on income. It's a tax on past income. If you keep switching jobs and invest your money you shouldn't have to worry about inflation at all except when it's too low. The reason why it exists is that we don't want old money to dominate the economy, the other reason is that demand for USD is legitimately going up.
- killtimeatwork 5y ago
  > the other reason is that demand for USD is legitimately going up. I don't think that's the case, the price of dollar against other currencies does not indicate that.
  - vmception 5y ago
    If there was an alternative asset to buy with greater liquidity that would make sense For now it is a non-negligible factor (I’m not the person you replied to, and they didnt mention other currencies, just adding to the discussion)

vmception 5y ago

Yeah we got that, anyone that talks about inflation that way is talking about it that way. As it not something you pay to the state, why not add your healthcare premiums while you’re at it. If you have assets look into charitable contributions. You can donate a portion highly valued illiquid business interests to any charity that will take it and reduce your own taxes for years.

throwaway3699 5y ago
Why shouldn't inflation be considered a tax? It's a major reason for lack of social mobility, i.e. keeping the poor poor without them even knowing it. The end result is the dollars end up in government pockets, so what's the difference?
- vmception 5y ago
  Inflation has a mixed effect on the governments too. Municipal governments are affected the same as you are. And the federal government which issues the currency is also mostly adversely affected while marginally helping it (and all borrowers) defer paying off its debt. The additional money in its coffers is from its own creation* and doesnt help it purchase more (for long) as it has the same purchasing power and liquidity in the global market. Its revenue sources, which are mostly tax these days, are distinctive from inflation. *us treasury issues USD bonds, fed buys USD bonds from everyone including the us treasury creating new USD at the moment of transaction. Sometimes the US treasury is the recipient, other times the other investors are

imtringued 5y ago

>Inflation is a separate line item and it's effectively a tax. It's not a tax on income. It's a tax on past income. If you keep switching jobs and invest your money you shouldn't have to worry about inflation at all except when it's too low. The reason why it exists is that we don't want old money to dominate the economy, the other reason is that demand for USD is legitimately going up.

killtimeatwork 5y ago
> the other reason is that demand for USD is legitimately going up. I don't think that's the case, the price of dollar against other currencies does not indicate that.
- vmception 5y ago
  If there was an alternative asset to buy with greater liquidity that would make sense For now it is a non-negligible factor (I’m not the person you replied to, and they didnt mention other currencies, just adding to the discussion)