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Protect Taxpayers From Inflation!

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posted on Sep, 22 2010 @ 01:17 AM
The fantastically beautiful Christina Sochacki tells you how you are being reamed by the criminal government - Twice.

The terrorist organization known as the US Federal Government has decided the plebs must be taxed twice in order to atone for the sin of conducting profitable investments.

The looting mandate you call the capital gains tax effectively robs the masses at outrageous rates oftentimes reaching 100% because the tax is not indexed to inflation.

Of course, the terrorist looters have decided that we must pay an additional 3.9% tax this coming year. This tax increase was passed in the bill that conducted the fascist takeover of the healthcare system.

But wait, there’s more!

Next year, the criminal looting tax will increase by an additional 5% because the Bush tax cuts are set to expire.

Praise Mao, and may Stalin rob you blind until you are broken and dependent like a whipped mule.

edit on 22-9-2010 by mnemeth1 because: (no reason given)

posted on Sep, 22 2010 @ 01:22 AM
reply to post by mnemeth1

Anyone in a westernized country that says they are not a slave are fooling themselves..

I'm in Australia and directly or indirectly over 50% (some quote 70%) of my hard earned dollar goes to the Goverment....

So I'm atleast a slave half of my working life...

posted on Sep, 22 2010 @ 01:26 AM
reply to post by CynicalM

posted on Sep, 22 2010 @ 01:51 AM
Was I the only one having "Naughty Economics Teacher" thoughts?

Talk Economics to me baby!

No but seriously, I think she raises some good points. When talking about this issue at home and what to do about it, I suggest getting rid of the Bank of Canada. They look at me with that look of course, and then when I explain to them that we pay a third party to print our own money. They really don't know what role the central bank plays.

Without the central bank we would be lifted of a large burden.

posted on Sep, 22 2010 @ 03:31 AM
So because of inflation I'm not actually making a profit when I'm making a profit and thus, shouldn't be taxed on the real but not really real profit?

Why not use that argument to say that you shouldn't invest at all because inflation just takes your supposed profit away?

Maybe, just maybe, it's because you're still making a profit regardless of inflation and you are taxed as such. If we go with the idea that you should be taxed with inflation consideration then eventually, your tax rate would be close to zero as inflation got higher and higher and higher...

Then again, I'm sure you wouldn't be opposed to that idea at all, would you mnemeth1?

posted on Sep, 22 2010 @ 09:16 AM
reply to post by links234

Investors do calculate inflation rates into their investment analysis.

I suspect you've never had a college level finance course.

Go look up what NPV is and how ROI is calculated, then look at what is taken into account for RRR.

edit on 22-9-2010 by mnemeth1 because: (no reason given)

posted on Sep, 22 2010 @ 09:34 AM

Rate of return (RoR)

A return may be adjusted for inflation to better indicate its true value in purchasing power. Any investment with a nominal rate of return less than the annual inflation rate represents a loss of value, even though the nominal rate of return might well be greater than 0%. When ROI is adjusted for inflation, the resulting return is considered an increase or decrease in purchasing power. If an ROI value is adjusted for inflation, it is stated explicitly, such as “The return, adjusted for inflation, was 2%.”

Time value of money

Investments generate cash flow to the investor to compensate the investor for the time value of money.

Except for rare periods of significant deflation where the opposite may be true, a dollar in cash is worth less today than it was yesterday, and worth more today than it will be worth tomorrow. The main factors that are used by investors to determine the rate of return at which they are willing to invest money include:

-estimates of future inflation rates
-estimates regarding the risk of the investment (e.g. how likely it is that investors will receive regular interest/dividend payments and the return of their full capital)
-whether or not the investors want the money available (“liquid”) for other uses.

The time value of money is reflected in the interest rates that banks offer for deposits, and also in the interest rates that banks charge for loans such as home mortgages. The “risk-free” rate is the rate on U.S. Treasury Bills, because this is the highest rate available without risking capital.

The rate of return which an investor expects from an investment is called the Discount Rate. Each investment has a different discount rate, based on the cash flow expected in future from the investment. The higher the risk, the higher the discount rate (rate of return) the investor will demand from the investment.

Net present value (NPV)

In finance, the net present value (NPV) or net present worth (NPW)[1] of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of the individual cash flows. In the case when all future cash flows are incoming (such as coupons and principal of a bond) and the only outflow of cash is the purchase price, the NPV is simply the PV of future cash flows minus the purchase price (which is its own PV). NPV is a central tool in discounted cash flow (DCF) analysis, and is a standard method for using the time value of money to appraise long-term projects. Used for capital budgeting, and widely throughout economics, finance, and accounting, it measures the excess or shortfall of cash flows, in present value terms, once financing charges are met.

The NPV of a sequence of cash flows takes as input the cash flows and a discount rate or discount curve and outputting a price; the converse process in DCF analysis, taking as input a sequence of cash flows and a price and inferring as output a discount rate (the discount rate which would yield the given price as NPV) is called the yield, and is more widely used in bond trading.

Real Rate Of Return (RRR)

The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects. This method expresses the nominal rate of return in real terms, which keeps the purchasing power of a given level of capital constant over time.

edit on 22-9-2010 by mnemeth1 because: (no reason given)

posted on Sep, 23 2010 @ 12:01 AM
Good thread as usual Mnemeth. I'll telll you I do everything I can to deny every cent I possibly can from those criminal, murdering, fascists. I wish everyone did the same. It's like starving a tumor to get it to die and fall off...

edit on 23-9-2010 by Redwookieaz because: (no reason given)

posted on Sep, 23 2010 @ 12:16 AM
reply to post by mnemeth1

Thank you for such a well researched response, I'm almost shocked that it lacked the expected snark your posts and replies have been having lately.

So the point of the matter you're trying to get at is that we should be taxed on the real rate of return (the price of something after inflation consideration) rather than the net present value of something. Which seems logical and rational I said before, if you invest early enough then eventually, due to inflation, wouldn't your investments be worth less than when you purchased them? Even when you sell them for a 'higher' price?

I'm primarily basing this off of the video's numbers of $5,000 investment returning $6,000 but, due to inflation, not really being worth $6,000. As such, a proponent of her ideas would in-fact, prefer to be taxed on the lower number of the RRR...but, as is standard with a lot of people, who wouldn't want to pay lower taxes?

In the end, I think I understand what you're saying but I simply don't agree with it. No, I didn't take a college level financial science degree doesn't require it.

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