🎯 🫂 180 ✨️

Is inflation not part of the tax adjustment formula ?

If you make a lot of money (for a working person, not like millions a year or anything), it’s 28% for long term capital gains.

In “When Money Dies” it was notable how many people would file their taxes and just not pay. By the time the govt collected, the debt was worthless from the currency debasement.

In most countries, it’s not illegal to not pay. They only charge interest and maybe penalties. It’s only illegal to not file.

The best choice is to file and not pay, just invest the tax debt into bitcoin and (maybe) pay it later, if you want to.

Unrealized capital gains tax is practically untenable. The majority of assets held aren't able to be marked to market in dollar terms like stocks, gold or bitcoin. What is the dollar price of your home, right now? What's the dollar price of your friend's fine art collection? Saylor's yachts? That 100 acres you own in Montana?

All unknowns.

But if I spend my bitcoin directly on goods and services there’s no capital gains going to be paid. The only reason assets are appreciating to get taxed is bloody inflation anyway.

This is why you don’t sell.

Live beneath your means, borrow against your assets, and maintain positive cash flow on a month over month basis.

This is what the elite do. Their asset appreciation exceeds the interest they pay on their debt.

Never use your own money to buys something. YOUR money is to purchase yourself assets. Other peoples money is for expenses.

I think the USA should take a hard look at a different tax scheme. Income, and Capital Gains taxes have been gamed so badly, that the IRS is just a big mess. I think Consumption Tax, which exempts direct labor, property rental, and Charitable contributions, would be more straight forward and fair to all. You could abolish the IRS, and the cost of all that documentation and cost of chasing down tax evasion. And I mean no other taxation at the state levels either. No additional taxes from property tax, etc. A straight forward % across the board to fund the Fed, and state governments. Collection of this tax would be from point of purchase, and sent directly to one government department. That government department would redistribute the collected funds to Fed, state, and communities as necessary to fund their operations.

In 1950, an average home could be paid in full using 100% of an average employees 2 years of income.

Today the national realtors association reports the median price for an existing home is 410,200. This would indicate you need an income of 205,100 or year in order to buy it with 2 years of income.

Now my question is, what tax rate did you have in 1950 compared to the tax rate you have now with 205k income?