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Sunday, November 29, 2009

Can Your Taxation Rate Be More Than 100%?

I read an interesting story about a retired old woman who owned a house. Her savings and Social Security checks had been substantially eroded by inflation. Also due to inflation, property taxes had skyrocketed.

She was having trouble paying property taxes. The State foreclosed on her house for not paying property taxes. Via "Rule of law!", she had to be forcibly evicted from her house.

A pro-State troll might say "She should sell her house and rent!" There are several flaws with that argument. First, that was her home and she shouldn't be forced to move. Second, if you rent an apartment, you still pay property taxes. The cost of the landlord's property taxes are included in your rent.

That old woman was squeezed. Her savings were stolen via inflation. She still had to pay ever-increasing property taxes.

For someone with no income, your taxation rate goes over 100%!

I also realized that my parents have a taxation rate well over 100%. They are retired. They pay property taxes on their house. They pay the inflation tax on their savings. That adds up to a total taxation rate much higher than 100%.

I have a reasonable amount of savings from my previous jobs. Most of that is invested in the stock market. (I'm gradually switching to GLD and SLV and physical metal.) If you consider the loss of my stock market savings as a tax (especially when you adjust for inflation), then I'm paying a taxation rate well over 100%! I'm losing more due to the inflation tax on my savings, than I am due to income taxes on my labor! At this point, if I stick with State-licensed investments, the State will steal my savings faster than I can earn money and increase my savings!

That's something I'd never considered, before I realized that the stock market is one big scam. The State can steal my savings via inflation faster than I can earn new savings!


Anonymous said...

The taxation rate will rise to the maximum level possible i.e. the parasite class will grow until productive labor can no longer support them.

I heard 50% of the UK economy now supports the State. Does that mean there is one parasite for every productive worker now?

Elsewhere (maybe on this blog) it was said that laws will grow until the judge and jury start to laugh at the new laws passed.

The UK government has made it illegal to weigh a herring in a non-proscribed manner. They like to legislate rather than actually fixing problems.

They have even legislated for decreasing government debt!

Next they will legislate against the sun rising!

Anonymous said...

Sure it can, if your salary after taxes is less a return on your savings than inflation. So if you have 100,000 Fraudulent Reserve Notes and your salary after taxes is 10,000 FRNs but inflation is 15%, your new savings (110,000 FRNs) did not keep up with inflation because it only grew 10%. And that's assuming you consumed none of your income. Inflation is a tax on savings, even though you already paid taxes to get those savings.

Anonymous said...

usury rules. fractional reserve banking gives TOTAL Power to the few and it enslaves the many, and it never stops, or end. Menawhile we are told we are 'free', we vote. All lies, because the people with total power over us, have no choice but to continue their charade until they have a World State, complete with the Nihilism.

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