If governments invent money out of thin air, why the hell are there taxes?
@berkes you can't apply progressive taxes just by inflating a currency
@gchaincl OOTH, with inflation, you extract from all wealth, including things that commonly aren't taxed.
And it 'negatively taxes' debt too. Something normal taxes hardly ever provide.
And while not progressive, it does hit the wealthy far harder than the poor.
@berkes never thought about the debt, that's a good point.
Why does inflation hit the wealthy far harder then?
@gchaincl Inflation of 2%, simply 'takes away' 2% of all wealth and debt yearly. So someone making small wages, but having no surplus (savings), loose nothing. Those with deficit (debt) even gain.
As is the case for most poor to middleclass.
Only those people and companies who accumulate wealth (saving) loose 2% of that, yearly. 2% is more than most millionnaires pay in taxes today.
Essentially a flat tax only on wealth and never on income.
@berkes makes sense, thanks!
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