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Pretty sure the solution that US politicians will find will be to create new dollars out of thin air, so instead of increasing taxes they increase the money sup
by rvnx 7mo ago
Pretty sure the solution that US politicians will find will be to create new dollars out of thin air, so instead of increasing taxes they increase the money supply.
Of course this is going to increase prices, but then they can blame China / Russia / Iran whoever is the scapegoat at that time.
- tartoran 7mo agoThat’s a tax on the poor
- bee_rider 7mo agoIt would cause inflation, isn’t that sort of a tax on people who have more wealth than income? (Which includes people like retirees, so, I’m not saying this is a universally good thing).
- bad_haircut72 7mo agoNo because assets hold their worth. Poor people have no assets
- mothballed 7mo agoPoor people are hit a lot harder, but rich still have to pay capital gains on inflation even despite having no real change in value. So the rich pay inflation at the rate * 0.2. Poor pay it at the rate * 1.0 (5x the rate of the rich).
- JumpCrisscross 7mo ago> rich still have to pay capital gains on inflation “Pay” is doing a lot of work there. My house is half equity half debt. The debt gets to be paid off with inflated dollars. And I pay no capital gains on the appreciation. I can, however, tap it for liquidity if I need it.
- mothballed 7mo agoRich people don't tend to have a sizeable portion of their worth tied up in their primary residence (and even then, IIRC there is a cap on capital gains exception), otherwise property tax would turn into a wealth tax for them which obviously they want to avoid. Non-primary residences still require paying capital gains. The inflated value you paid off with debt for a non-primary residence still gets captured as capital gain in the end when you actually want to sell the house for money.
- JumpCrisscross 7mo agoYou're right, thanks.
- JumpCrisscross 7mo ago> isn’t that sort of a tax on people who have more wealth Classically, yes, particularly when that wealth is closer to productive capital. In modern economies, the rich also hold a lot of debt, which lets them benefit from inflation.
- ziml77 7mo agoTheoretically yes, but in practice the wages of people already not making much have not tracked inflation and there's no reason to believe that they will now. That means any inflation is also a tax on them.
- hammock 7mo agoIsn’t it the opposite? Salaries are sticky while asset prices rise freely with the liquidity of the market for them