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The government budget office is running on 4D chess logic where they allocate your future capital gains tax before you even open your brokerage account.
Yeah what the hell even is this post? “I shouldn’t have to pay as much taxes because of inflation”? That’s just dumb. Inflation affects everyone. In fact, someone working for their money is generally going to be hurt by inflation much worse than someone investing in stocks.
We already have a crazy bunch of tax benefits for rich people. We don’t need another special carveout.
There's a large group of the population who like me doesn't like the size of the federal government and thinks that we should cut taxes along with the military and entitlements among completely eradicating certain governmental departments. The founding fathers would have never approved of the government being as powerful as they are.
Inflation was 9% on goods… and in most places there is also a percentage sales tax, so you were charged tax for the income, the price of shit went up, and you paid more tax on those purchases than you would have previously as well.
If you aren’t compounding gains, you’re compounding losses.
If you’re taking profit at 12% trading stocks might not be for you. Currently, if long term capital gains are your entire income, married filing jointly is zero tax up to like 130K annually. Trading is the dumbest place to make the taxation argument. You get high taxes on short term capital gains because it’s being disincentivized, long term it’s one of the lowest tax brackets. If anything, better argument is why is my labor income taxed at a higher rate than someone’s trading income?
Trading is the dumbest place to make the taxation argument
No, actually, it's the perfect place. Property taxes are equivalent to capital gains taxes, and they assume market rate only goes up. So your property could be going down in value as nearby properties go, and that means your tax rate does not reflect the value of your property. You are taxed based on what your neighbors are willing to pay, not what you paid for the property.
The same thing happens with stocks. The value of the stock is determined by what other people pay on average. If they tax the increase, like they do with land, they are assuming the value always goes up so it's a state enforced monopoly of sorts. You must spend money appreciating your asset because if you don't you'd lose that money to taxes anyway.
Property taxes =\= Capital gains taxes. You’re making a false equivalence.
Claims presented without supporting evidence or reasoned argumentation are summarily dismissed, with the presumption falling against the debater's position.
yeah, anyone advocating against this likely wants the gold standard, meaning the economy can only grow as fast as we mine gold from the ground, so a lot less data centers
you can borrow, but the economy will only grow at the rate of introduced currency. so lenders will only ever dare to lend at a rate of circulation and nothing more, since they know whatever idea you have, its not worth more than gold. this is not a matter on fiat, with some stipulation
But the taxes you are paying are also inflation adjusted. You are lucky they don't make you pay taxes on your gains, and then inflation adjust them up based on the original purchase date.
The wealthy love inflation. It makes their money more valuable by devaluing our buying power. It makes people desperate and primed for exploitation.
As long as we allow the ultra wealthy to control government things will continue to get worse for her average person.
The wealthy are openly hostile to working families and want to harm us. This should be obvious to anyone paying attention. For the same reasons they oppose union organization. They can’t tolerate working people being treated with dignity or respect.
We really need to deal with this open head wound affecting our society.
I take a loan for a million dollars. Since im ultra wealthy I lock in a low intrest rate not accessible to lower income, let's say 1% APY. I take that million dollars and buy oil. I wait a 5 years and let inflation double the price of oil. I take my oil and sell it.
Ive just made 950k by sitting around and doing nothing. I didnt pay taxes because I did the transactions from my LLC in the Caymens.
The rich can finance this lifestyle, the poor need that money for bread.
The absolute golden rule of state economics: privatize your heavy losses during a market crash, but completely nationalize your inflationary gains during a recovery.
Capital gains on stocks should be taxed at 90% and stocks shouldn't qualify as collateral on loans so the rich will be forced to invest their money in things that actually grow the economy.
To be fair, this only really affects the wealthy. Most regular people will be either covered by the capital gains allowance or won't even need it because unless you can put 20 grand a year away into a tax free ISA it's not even an issue.
Wow its almost as if using memes isnt something that happens regularly on this sites comment section.
Or maybe its just a "me" thing because I'm a "radical woke lefty who has blue hair and changed their gender 42 times this week alone and is too scared to respond with words to YOUR GIRTHY MANHOOD THAT HAS NO CORRELATION to the FORD F150 with the extended cab and raised wheels I (you) DRIVE!!"
Fuck, you got me again Mr. Holmes.
Oh but do remember to tongue-clean those boots on your way out.
Quick question, the people who keep trying to cut capital gains taxes over wage taxes and claim they’re unfair - do you think they’re the boot lickers, or the boot lickees?
Tell me how common deflation is Vs inflation though.
Pretty much never.
The Cantillion effect comes into play here:
"Early Beneficiaries: The entities closest to the money source (investors, asset owners, large firms) receive the fresh funds first and spend them before general prices have risen. They can buy assets, stocks, or real estate at relatively low, pre-inflation prices."
Governments benefit, consumers do not.
Products deflate rarely with things like the industrial revolution making goods cheaper but for the main part inflation is around 3-6% a year and usually more.
Basically, currency always inflates. A medieval Dutch Gulden was worth around 420 Euros. When the Euro was introduced, the exchange rate from Gulden to Euro was 2:1. What centuries of inflation does to a mofo.
Because it becomes a massive problem if currency is suddenly worth more. People can suddenly buy more with less, causing them to not spend as much money as before. Also, when one vital sector deflates, consumer demand collapses as the prices of all the other sectors are now way higher than the new normal. Soo, suddenly every producer and seller has their profits collapsing. And seeing as wages infamously don't flex with monetary value much, employee costs are now also going through the roof, causing massive lay-offs and tanking whole industries.
And the second big reason is that loans and debts don't adjust for monetary value changes either. The value of the money you borrow typically goes down with inflation, meaning that you pay back less than you once borrowed, the longer you wait. That's the whole point of mortgages.
Now imagine that the value of every debt in your economy skyrockets due to the production deflation cycle into collapse. Everyone who ever borrowed money for any reason is now fucked. Every mortgage, every last bit of investment debt, every last bank loan is now too expensive to pay. Soo, every attempt from anyone to buy themselves a stable future or income collapses and defaults, fucking over everyone who was dependant on it.
Inflation sucks. But deflation is catastrophic, and fast.
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