LogFAQs > #950333933

Solid Snake07 posted...

Property and sales tax are state taxes, not federal.

And yes, taxation by inflation is a thing.

https://www.finweb.com/taxes/definition-of-inflation-tax.html

10 months is not long enough to know the real effects of this either. These are things that usually take years to play out, and that's without the fiasco that's covid.

As I said, I'm not saying these checks shouldn't happen. What I'm saying is there's gonna be damage of some kind regardless of what path we choose from here. But you shouldn't just boil down the fiscally conservative viewpoint down to "they just don't care about poor people." There are legitimate potential consequences to be concerned about here even if you disagree with them.

"Inflation tax is not an actual legal tax paid to a government; instead "inflation tax" refers to the penalty for holding cash at a time of high inflation. When the government prints more money or reduces interest rates, it floods the market with cash, which raises inflation in the long run. If an investor is holding securities, real estate or other assets, the effect of inflation may be negligible. If a person is holding cash, though, this cash is worth less after inflation has risen. The degree of decrease in the value of cash is termed the inflation tax for the way it punishes people who hold assets in cash, which tend to be lower- and middle-class wage earners."

https://www.washingtonpost.com/business/2020/12/07/unemployed-debt-rent-utilities/

"Nearly 12 million renters will owe an average of $5,850 in back rent and utilities by January, Moodys Analytics warns."
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Ad Hominem.