How much is the annual inflation tax?

[stephan]

With the Fed printing more and more money, how much are we being taxed by inflation?

[iron81]

First off, it isn't necessary to start a poll to ask what the inflation rate is, government and private estimates are all over the web.

Second, tax on what? Income? Capital Gains? Wealth?

Third, the idea that government causes inflation to raise revenue is silly. Sure, the debt is reduced over time by inflation, but expenses increase as well. Social Security, Medicare, and government salaries all get a cost of living bump every year. Inflation is also reflected in the interest rate they have to pay to service the debt.

[Jcrew]

Do you not realize the benefit from underreporting the real rate of inflation?

[Jcrew]

Monetary inflation is different from price inflation. IMO price inflation seems to be around 4-6%.

[gonebroke2]

10-15%, soon to be 20% by next yr.

[tolbiny]

[ QUOTE ]
First off, it isn't necessary to start a poll to ask what the inflation rate is, government and private estimates are all over the web.

Second, tax on what? Income? Capital Gains? Wealth?

Third, the idea that government causes inflation to raise revenue is silly. Sure, the debt is reduced over time by inflation, but expenses increase as well. Social Security, Medicare, and government salaries all get a cost of living bump every year. Inflation is also reflected in the interest rate they have to pay to service the debt.

[/ QUOTE ]

Because technological innovations lower the costs of products over time inflation can be significantly higher than the built in inflation bumps that SS and other programs get.

[PLOlover]

[ QUOTE ]
10-15%, soon to be 20% by next yr.

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[mjkidd]

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10-15%, soon to be 20% by next yr.

[/ QUOTE ]

What do you base this on?

[iron81]

[ QUOTE ]
[ QUOTE ]
10-15%, soon to be 20% by next yr.

[/ QUOTE ]

What do you base this on?

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[ QUOTE ]
Second, tax on what? Income? Capital Gains? Wealth?

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[adios]

Quantity theory of money

Solve for P and then plug in the numbers to get your answer.