The inflation tax?
A worthy inflation perspective at:
http://www.financialsense.com/fsu/editorials/2007/0919.html SEIZING YOUR ASSETS TO COVER RETIREMENT PROMISES: How the Government May Do It
Well, just one part I took in, shows that taxes on appreciated value of an asset sold is computed before inflation and value after inflation. So if I buy something for $100k, and sell it for $200k, I pay taxes on $100k profit, even if inflation has kept the "real" value constant over time.
Mostly I don't greatly care to lament my poor fortune of having money to invest, as many others don't even have that, BUT I admit taxes do affect my decisions. Like I bought a rental property and if I ever sell it, I'll have to pay taxes no only on appreciation, but on a depreciation curve (which reduces value by 1/27.5 per year). Anyway, I consider it more of a "charity" investment than hoping to earn a profit, so if I'm lucky enough, I'll give away its entire value, and avoid taxes if I can!
I guess my RothIRA is a good deal too.
The article focuses on how the government is going to pay for massive entitlements in the future, promised, with no possible funding structure to pay for them. And somehow the government will get our investment values THROUGH inflation.
It is funny how easy scapegoating is. Those on the bottom can complain the rich are sucking up all the wealth - by exploiting the desparation, greed, and imprudence of those on the bottom. Those on the top can complain their gains are always in danger of being stolen by a greedy government.
My peace of mind, if I have any, comes down to a hopelessness, that I can protect wealth - from inflation or government, or whatever threat, so all I can do is be a good steward while I have whatever I have. When it's gone, it's not my responsibility any more. Not much peace, but good enough for me.
http://www.financialsense.com/fsu/editorials/2007/0919.html SEIZING YOUR ASSETS TO COVER RETIREMENT PROMISES: How the Government May Do It
Well, just one part I took in, shows that taxes on appreciated value of an asset sold is computed before inflation and value after inflation. So if I buy something for $100k, and sell it for $200k, I pay taxes on $100k profit, even if inflation has kept the "real" value constant over time.
Mostly I don't greatly care to lament my poor fortune of having money to invest, as many others don't even have that, BUT I admit taxes do affect my decisions. Like I bought a rental property and if I ever sell it, I'll have to pay taxes no only on appreciation, but on a depreciation curve (which reduces value by 1/27.5 per year). Anyway, I consider it more of a "charity" investment than hoping to earn a profit, so if I'm lucky enough, I'll give away its entire value, and avoid taxes if I can!
I guess my RothIRA is a good deal too.
The article focuses on how the government is going to pay for massive entitlements in the future, promised, with no possible funding structure to pay for them. And somehow the government will get our investment values THROUGH inflation.
It is funny how easy scapegoating is. Those on the bottom can complain the rich are sucking up all the wealth - by exploiting the desparation, greed, and imprudence of those on the bottom. Those on the top can complain their gains are always in danger of being stolen by a greedy government.
My peace of mind, if I have any, comes down to a hopelessness, that I can protect wealth - from inflation or government, or whatever threat, so all I can do is be a good steward while I have whatever I have. When it's gone, it's not my responsibility any more. Not much peace, but good enough for me.
posted by Ares Olympus at 1:56 PM
0 Comments:
Post a Comment
<< Home