[ARC5] Re: ARC5 Digest, Vol 37, Issue 10 OT Drift

[D C *Mac* Macdonald]

So who's going to tell the feds?

Mac - K2GKK/5


----Original Message Follows----
From: J Forster <jfor at quik.com>
To: ARC5 at mailman.qth.net
Subject: RE: [ARC5] Re: ARC5 Digest, Vol 37, Issue 10  OT Drift
Date: Wed, 14 Feb 2007 18:45:19 -0500

   [snip]  Supply and demand govern price.  The overall
   inflation rate between then and now is basically
   non applicable.

May be but the scarcity has increased the typical selling price over
just inflation.

   And you are dead on with your analysis of why
   the politicians love inflation.  With the graduated
   income tax, people who gain no real buying power
   are taxed increasingly heavily to feed the gross
   appetites for someone else's money by pols and
   their hangers-on.

It's actually worse than that. If you have an asset that just keeps up
with inflation and sell it after a number of years, you are liable for
Capital Gains Tax, BUT the'Basis' is NOT adjusted for inflation.  You
are taxed on inflation, pure and simple.

-John