Sunday, December 23, 2012

Dr. Thomas Sowell-Taxing the Poor(with Inflation)

Dr. Thomas Sowell. raises the issue about taxes on the poor. One of the largest taxes on the poor is inflation.  In this article, "Taxing the Poor", Dr. Sowell opines on the matter. Here is a excerpt of the article: 

"One of the biggest, and one of the oldest, taxes in this latter sense is inflation. Governments have stolen their people's resources this way, not just for centuries, but for thousands of years.

Hyperinflation can take virtually your entire life's savings, without the government having to bother raising the official tax rate at all. The Weimar Republic in Germany in the 1920s had thousands of printing presses turning out vast amounts of money, which the government could then spend to pay for whatever it wanted to pay for."

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