Time for all taxes to be adjusted for inflation.

 GOVERNMENT PROFITS FROM INFLATION

OVERSPENDING CREATES INFLATION, THEN INCREASES TAXES ON CITIZENS

Tax time is just around the corner and it will bring surprises for many. There is a need for many taxes to be adjusted for the constantly rising inflation. While there are some adjustments being made as to the tax brackets, even they are not realistic with the rising inflation. 

We must be aware that inflation is reflected in rising prices of both needed things like food and energy, but also in asset values. This is a direct result of deficit spending, where the government spends more money than it receives in taxes. In reality, the value of your money and savings is declining in purchasing power. It is not an accident, it is in effect a tax on everything you own.  While it is often reported that adjustments are made to things like social security etc, they never fully  compensate for inflation. The Federal Reserve wants inflation, chooses a target of 2%, which is intentionally devaluing your money and assets by 2% a year. It is in the governments best interest to have inflation. Secondly their calculation often remove items such a food and energy from the equation, those items that are necessities. So, in effect, their calculations are also intentinly shewed to give a false calculus to real inflation.

The biggest scam is perpetrated when it come to capital gains. For instance, say you buy a stock in 1990 for $20 a share, with of course earnings that were far more valuable in purchasing power than $20 today. So you then decide to sell that stock that is now $40 a share and you feel you have done well, In effect if you calculate for compounded inflation your $40 may actually have less buying power than it did in 1990. In fact your $20 dollars in 1990 adjusted for inflation should be $46.04 just to break even, so in effect adjusted for inflation you have a loss of $6.04. 

Then the government calculates that you have a capital gain of $20 and requires a 15% tax or $3.00 a share for a realized loss of $9.00 a share due to inflation and taxes that do not account for inflation.

In the future you can expect that inflation is going to be higher and your purchasing power declining due to governments intentionally creating inflation. 

The other fact that needs to be addressed is that while all capital gains are taxed, losses can only be taken up to $3000. a year. If you should have loss of $30,000 it will take you 10 years to deduct this loss from your gains. If you are elderly you may not live that long.     

Then there is interest in the bank it is always a losing proposition, it never accounts for inflation, is never more than inflation, is always less, then you are required to pay taxes on this losing proposition.  

We must all realize that our government is continually in process of confiscating our earned and saved wealth, and yet they still do not have enough money.