Editor’s Note: Unless you are filing an extension, you have about two and a half weeks to submit your federal and state income tax forms. The due date is April 15th.
And while that tax deadline comes and goes every year, we continue to get taxed all throughout the year as a result of the “Inflation Tax.”
With Tax Day close at hand, I thought it appropriate to share this article I wrote for Escape Artist Insider magazine a couple months ago. It should fully explain why your gold and silver – and everything else you own of value – will continue to rise in price.
It is why gold at all-time highs is dirt cheap.
Enjoy…
“It is a way to take people's wealth from them without having to openly raise taxes. Inflation is the most universal tax of all.” -Thomas Sowell
It is that time of year again… at least here in the United States. People are filing their income tax forms.
Individual taxpayers are gathering receipts and earnings statements. Accountants are crunching numbers and looking for loopholes in the tax code to legally “avoid” paying more tax than they need to.
Tax avoidance is good… but tax evasion is a crime here in the I.O.U.S.A.
Today, I want to talk about another tax. It is not sales tax. It is not income tax. It is not property tax. It is not an estate tax.
In my humble opinion, it is worse than all those taxes combined.
Today, I want to talk about the Inflation Tax.
Insidious Wealth Killer
All the other taxes I mentioned above are drains on our wealth to be sure. They are the means by which governments raise revenue to operate… to provide the collective services we expect our governments to provide.
These taxes are overtly stated. We are aware of them. We pay them.
The Inflation Tax is completely different. As Thomas Sowell states above, it is a way of taking money from citizens without having to levy a formal tax.
I believe the Inflation Tax is pure evil.
Politicians use this form of taxation as a means of forwarding their agendas without having to openly raise the money to pay for their agendas. Instead of gathering public support for both the project and the funding of the project, they move forward with the initiative, spend money they do not have as a result of overt taxation, increase the money supply to pay for it, cause each currency unit in circulation to lose value, and make each citizen less wealthy.
To me, this represents a lack of leadership. To me, this represents incompetence. To me, this represents irresponsibility.
You can easily call the Inflation Tax any of the following…
- Lack of Leadership Tax
- Incompetence Tax
- Irresponsibility Tax
It is insidious in that it is the result of poor leaders with no backbone quietly and deliberately eroding the wealth of all citizens… and most citizens are oblivious to what is happening to them.
It is the path weak leaders take as opposed to making difficult (and sometimes unpopular) decisions necessary to balance a budget and live within their means.
In the United States, this is the effect of that accumulated incompetence over the past 100+ years…
This is by no means a pretty picture.
Surviving Incompetence
The solution to the Incompetence Tax is simple and twofold.
First, we need to eliminate incompetence. If we are being led at the city, state, or national level by incompetent, fiscally irresponsible leaders, we should remove them from office.
Unfortunately, not all countries enjoy free elections. If you do not live in a country where you can choose your leaders, move to where you can.
If you have the ability to choose your leaders, make smart choices. Choose leaders who have the backbone to do what is right whether it be popular, or easy, or not.
Educate your fellow citizens. Expose the insidious nature of the Irresponsibility Tax and hold those who levied the tax on you accountable for their weak leadership.
Second, you need to protect your wealth from the damage of the past, present, and future implications of the Inflation Tax. In the United States, we have seen a nearly 100% decrease in the purchasing power of the U.S. dollar over a little more than a century.
That damage is done. More will follow for sure.
Take steps right now to Keep What’s Yours!
The essence of what we do at Asset Strategies International is to preserve your purchasing power despite the Inflation Tax. Our motto is a promise to you to help maintain your purchasing power as our incompetent and irresponsible elected officials continue to destroy our currencies.
Take a portion of your dollars, euro, yen, pesos, or whatever, and convert them to gold and silver here… now.
In effect, you will be cryogenically freezing your purchasing power for future use. You will be stopping the cycle of wealth deterioration. You will be capturing your value and holding it for when you really need it in the future.
Easy to Say
I know. It all seems so easy to say, but it is much harder to do in reality.
I get that.
Right now, our Federal Reserve Chairman, Jerome Powell, would have us believe Americans are spending more because they have saved money well and they are not feeling the pinch of inflation.
Mr. Chairman is completely out of touch with reality.
People are spending more because everything they need costs 3% more than it did last year, and everything they needed last year cost 10% more than the year before that. It simply costs more to buy what they need.
Of course, unlike our incompetent public officials, we cannot simply print and devalue the money we have. We either have it, or we need to get it from somewhere else.
A few years ago, people turned to home equity to get more money. Interest rates were miniscule, and they could take a chunk of cash out of their home equity and meet their needs and their wants.
That option is not available now. Interest rates are up near 8%, and a refinance has serious costs associated with it as a result.
Next, people turned to their credit cards. They racked up over a trillion dollars in credit card debt at 20% interest rates… and they cannot afford to pay the bill.
So now, we are seeing people sell precious metals to pay off credit card debts. I wish they did not have to take that step, but I am glad their wealth insurance is kicking in when they need it.
Bottom line, I know it is tough right now.
Still, work hard at cutting back on your wants and being smart about getting what you need. Find a way to put a little bit of money aside. And put that money into gold and silver now.
You need to start to break this cycle of Inflation Tax victimhood. Every little bit helps. Every ounce of wealth you can protect now will put you miles ahead in the future.
Be disciplined. Take a stand. Do so now.
We have programs that allow you to accumulate gold and silver for as little as $50 per month. And yes… even $50 per month is worthwhile. You would be surprised how quickly that can accumulate much needed purchasing power.
Let us help you break this insidious cycle.
Good investing…