Wednesday, March 30, 2011

New Age Inflation and Thievery

In addition to all of the inflationary pressures you feel at the grocery store and the gas pump, there is a type of inflation that nobody measures.

It's called taxes. And unlike the grocery store or the gas pump, there is no wiggle room. No escape.

Government doesn't stop consuming in a downturn. In fact, government generally consumes more. This occurs locally in city and county taxes, resort fees, higher licensing costs. Government also loves to take a big bite out of your ass with property taxes. Give any entity the power to consume more with little or no restraint- and see what evolves.

Homeowners may think they own their home once the bank note has been paid but the sad reality is that you are just renting the property from the government. While government imposes a 100-400 a month property tax- government has simply stolen your property and converted it to their own use. A fascinating and legal way of stealing your property and providing themselves with a never ending income stream. The higher the taxes- the less likely you are to sell the property. So not only does the government steal your wealth- but they also damage your ability to sell the property to another owner. I know- I certainly pay attention to tax rates in Boise. They tax the shit out of the more affluent areas of town. And people keep paying.

Here's a great post from ZeroHedge. Think government reduces taxes when property values go down? Think again. New age inflation and thievery- http://www.zerohedge.com/article/guest-post-could-declining-house-values-spark-next-taxpayer-rebellion

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