Economic stratification is the reason poor people get out of bed in the morning to perform tasks for rich people. It is the heartbeat of global commerce. You think that's a dangerous thing?

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Posted by swamie

Where opportunity meets hard work

Member since Jan 2007

27253 posts

Posted on 7/3/19 at 4:06 pm to Sentrius

Nah, that don’t work for me Newt Dog. Why shoot yourself in the foot for something the majority of taxpayers won’t see and the left will crucify you for in an economy that’s already booming?

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Posted by Papplesbeast

St. Louis

Member since Dec 2014

826 posts

Posted on 7/5/19 at 9:29 am to beaverfever

quote:
I can’t think of many situations where it would be necessary for ordinary income to be indexed for inflation.

I don't think you understand what is being discussed. Right now if an individual or a corporation has an investment that grows 6%, they get taxed on the entire 6% because it is not indexed to inflation. If the money in that investment is indexed to inflation, they would pay taxes only on the difference. That means if the inflation rate is 2% and you earn 6% on your money, you would pay taxes as though you earned only 4% on your investment.

So my question is, why should a corporation get to take advantage of that but not individuals? It would affect all investments for individuals, but it seems like it would be a particularly big deal for people who have savings accounts. Not only do savings accounts typically grow at rate lower than inflation (so you're effectively losing money), you also have to pay taxes on those earnings despite the fact that you effectively lost money. That's something that has always annoyed me. And if corporations get to do this but not individuals it will just annoy me further.

This post was edited on 7/5/19 at 9:33 am

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