The Next Great Theft

Taxation is a form of legalized theft.  After all, the government is taking from the rich and then redistributing that money to the poor.

Today, over 45% of American households receive some form of direct government payments.  And nearly 50% pay no federal taxes whatsoever.  This is a record number of people who neither paid federal income taxes in 2010 nor were claimed as a dependent by another taxpayer.

What it comes down to is a small number of Americans that are paying for the well-being of a majority. While half of the population may pay something in taxes, only the top 10% – people earning more than $113,000 – pay a substantive amount. These few citizens pay 70% of all the income taxes collected.

President Obama can talk all he wants about the rich needing to pay more, but the truth is they can’t afford to pay much more because they are already paying too much.  The people receiving the benefits are the ones that have to start giving something up, and yet no one wants to give up their piece of the pie.

I guarantee when spending cuts begin to occur and it affects your lifestyle, then you will complain about the cuts in that area.  And I could easily be talking about social security.

So the government must come up with a new way to steal your money if they can’t tax you directly.  This is what they are doing.

The Federal Reserve has made it nearly impossible to live off your savings. Thanks to the Fed's manipulation of interest rates, anyone who chooses to simply save money is going to lose a lot of value.

The latest inflation numbers show wholesale inflation having risen 6.8% over last year.  Savings accounts are paying less than 1%. So if you had $1 million in the bank, you lost roughly $50,000 in value last year. You'll go broke fast if you can't earn at least as much as inflation on your savings.

This forces the CD purchaser to take additional chances with their savings in order to earn enough to offset the impact of higher inflation and higher taxes.  Most investors can’t manage risk well enough to want to take chances with their money.

So the government will continue to steal $50,000 a year from a $1,000,000 account.  You won’t notice it, because the $1,000,000 will remain the same.  It’s just that the $1,000,000 will not buy as much as it used to.  And that is how the government steals your money.

By increasing inflation, they can take money from the savers and continue to give it to the non-savers – the spenders.

Yes, we have a government that rewards financial irresponsibility and punishes financial responsibility.

And it looks like it is only going to get worse.  The government, of course, controls this by manipulating the inflation statistics.  They’re trying to convince you there is no inflation, but you know there is.

Inflation is called “the hidden tax.”  As opposed to a direct tax.  And they implement this every time they need more money and don’t feel they can raise taxes enough directly.  And taxing only the wealthy will not come remotely close to being enough – regardless of the amount they increase it.

They’ve been doing it for a while now, but I predict it is fixing to get worse.  If they don’t dramatically reduce the budget, they will have no choice.  Watch for it.