Oh yeah, ... fired this off in the email as a censorship test for Social media. I suggested posting the youtube links one at a time (Provided) and mention in their four posts that it is NOT censored on Youtube. and see if places like Farcebook delete them. Further, I suggested that IF the individual posts do NOT get censored, to then post this Substack link as an All-In-One, to see if that will get deleted or not. Should be a telling test.
Inflation is often referred to as a "hidden tax" because it reduces the purchasing power of money and leaves taxpayers worse off despite no explicit increase in taxes [0]. This concept is supported by the following points:
1. Reduced Purchasing Power: As prices rise due to inflation, the same amount of money can buy fewer goods and services [0].
2. Bracket Creep: Inflation causes taxpayers to move into higher income tax brackets, effectively increasing their tax burden [0].
3. Decreased Value of Assets: Inflation can decrease the value of certain assets, such as savings accounts or bonds [0].
How Inflation Functions Like a Tax
1. Increased Costs: Higher prices for goods and services mean individuals and businesses have to pay more for the same things they bought before [0].
2. Government Spending Power: Inflation increases the government's spending power, as the same amount of money can now purchase more goods and services [0].
3. Neutrality of Tax Reductions: Politicians may reduce tax rates to appear to give tax breaks, but inflation can offset these reductions by pushing people into higher tax brackets [4].
Example of Inflation as a Hidden Tax
Senator Paul uses the example of COVID-19 stimulus spending to illustrate how inflation functions as a hidden tax:
- Congress passed stimulus packages without raising taxes.
- However, the subsequent inflation caused by these large-scale government expenditures resulted in a hidden tax on Americans [4].
This example demonstrates how inflation can act as a stealthy tax increase, even when explicit tax hikes are avoided.
Conclusion
Inflation acts as a hidden tax because it reduces the value of money and increases costs for consumers and businesses, effectively decreasing purchasing power and increasing tax burdens, all without an obvious increase in explicit taxation.
Inflation is often referred to as a 'hidden tax' because governments can effectively tax citizens through the gradual erosion of the value of our money..
Oh yeah, ... fired this off in the email as a censorship test for Social media. I suggested posting the youtube links one at a time (Provided) and mention in their four posts that it is NOT censored on Youtube. and see if places like Farcebook delete them. Further, I suggested that IF the individual posts do NOT get censored, to then post this Substack link as an All-In-One, to see if that will get deleted or not. Should be a telling test.
Definition of Inflation as a Hidden Tax
Inflation is often referred to as a "hidden tax" because it reduces the purchasing power of money and leaves taxpayers worse off despite no explicit increase in taxes [0]. This concept is supported by the following points:
1. Reduced Purchasing Power: As prices rise due to inflation, the same amount of money can buy fewer goods and services [0].
2. Bracket Creep: Inflation causes taxpayers to move into higher income tax brackets, effectively increasing their tax burden [0].
3. Decreased Value of Assets: Inflation can decrease the value of certain assets, such as savings accounts or bonds [0].
How Inflation Functions Like a Tax
1. Increased Costs: Higher prices for goods and services mean individuals and businesses have to pay more for the same things they bought before [0].
2. Government Spending Power: Inflation increases the government's spending power, as the same amount of money can now purchase more goods and services [0].
3. Neutrality of Tax Reductions: Politicians may reduce tax rates to appear to give tax breaks, but inflation can offset these reductions by pushing people into higher tax brackets [4].
Example of Inflation as a Hidden Tax
Senator Paul uses the example of COVID-19 stimulus spending to illustrate how inflation functions as a hidden tax:
- Congress passed stimulus packages without raising taxes.
- However, the subsequent inflation caused by these large-scale government expenditures resulted in a hidden tax on Americans [4].
This example demonstrates how inflation can act as a stealthy tax increase, even when explicit tax hikes are avoided.
Conclusion
Inflation acts as a hidden tax because it reduces the value of money and increases costs for consumers and businesses, effectively decreasing purchasing power and increasing tax burdens, all without an obvious increase in explicit taxation.
SOURCES
1 favicon-taxfoundation.org
taxfoundation.org > taxedu > glossary > inflation
Inflation Definition | TaxEDU Glossary - Tax Foundation
It is sometimes referred to as a “hidden tax,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing the..
2 favicon-www.barrons.com
www.barrons.com > articles > high-inflation-prices-taxes-fed-7d8eb226
Americans Pay a Hidden Tax. It's Called Sticky Inflation. - Barron's
It estimates that permanent 5% inflation would lower household lifetime spending by a median 3.62%, compared with zero percent inflation…
3 favicon-www.forbes.com
www.forbes.com > sites > williamdunkelberg > 2022 > 11 > 17 > inflation-a-sneaky-tax-on-everything-and-everyone
Inflation, A Sneaky Tax On Everything And Everyone - Forbes
Inflation raises their (and your) nominal income, but reduces how much it can buy. To date, prices have risen faster than wages, a hidden tax…
4 favicon-taxfoundation.org
taxfoundation.org > blog > inflation-regressive-effects
The “Inflation Tax” Is Regressive | Inflation Effects - Tax Foundation
It is sometimes referred to as a “hidden tax,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing …..
5 favicon-www.paul.senate.gov
www.paul.senate.gov > wp-content > uploads > 2023 > 02 > Inflation-Report-January-18-2022_1.pdf
[PDF] The Hidden Tax - Senator Rand Paul
... inflation can be thought of as a hidden tax for rampant government action. Though the U.S. government has not levied taxes to pay for..
6 favicon-en.wikipedia.org
en.wikipedia.org > wiki > Hidden_tax
Hidden tax - Wikipedia
A hidden tax is a tax that is not visible to the taxpayer. These taxes can raise prices of goods and lower salaries for workers…
7 favicon-blog.theya.us
blog.theya.us > inflation-hidden-tax
Inflation: An Invisible Tax - Theya Blog
Inflation is often referred to as a 'hidden tax' because governments can effectively tax citizens through the gradual erosion of the value of our money..
8 favicon-tax.kenaninstitute.unc.edu
tax.kenaninstitute.unc.edu > news-media > is-inflation-a-tax
Is Inflation a Tax? - UNC Tax Center
Formally, seigniorage exists when there is actually a difference between the value of the money and its cost to produce it. These days, most money..
9 favicon-cartwrightbenefits.co.uk
cartwrightbenefits.co.uk > downloads > Cartwright-Feature-Money-Part-Five.pdf
[PDF] Why inflation is a hidden tax, and why Brits are feeling the effects ...
This means that as nominal (but not real) earnings rise, more low earners are dragged into paying the 20% basic-rate income tax (which kicks in..