Do You Know THE BIGGEST Tax That You’re Paying? Let Me Explain
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I’ve said again and again and we here in America, we are in a perpetual state of paying taxes. I want to talk about the biggest tax of them all. A perpetual state of taxes. We have embedded taxes in everything. Sin taxes and tobacco, alcohol. Take a look at your cell phone bill. You don’t even see it anymore when you’re paying for gasoline.
So every single day we’re paying taxes. So when people make the argument, make the argument that, you know, a certain, you know, income, certain people of certain income don’t pay any taxes here in the United States. That’s not true. They’re not paying income taxes. Okay. They’re not paying income taxes, most certainly paying payroll taxes and they’re paying all of the embedded taxes. And now they’re also paying tariff taxes, but
The biggest tax of them all, of them all is inflation. The declining value of your money. I’ve been trying to explain this to people for some time. And again, it’s a bit of a difficult concept. actually went back and I took a look at
The average interest rate on the 10 year treasury in the year 2000 was 6 % over the course year. So if you retired, if you retired and you decided I want to go super safe, I don’t want to worry about anything, let’s just say in 2000 you had saved up a million dollars. You put money away, you had your money grow, you built up to a million dollars.
But you want to retire, want to, you know, no risk at all, no risk at all. You want a tax free income. You say, I’m going to go out. I’m going to put a million bucks, million bucks into the 10 year treasury. And I’m going to live off that. Now, 6%, what would you get? $60,000 a year, tax free. Now, I suggested people do this sometimes.
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It’s fun, it’s fun, but it’s frustrating. It really is. Go on and pull up any inflation calculator and take a look at what $60,000 is in today’s dollars. You’re looking at about 115, 115 or $120,000. Okay.
$115,000 to $120,000. So today, today, okay, you would need to have $2 million saved up to get the same tax-free income that you did back in 2000.
That my friends is a tax. The biggest ruse out there. And again, I try to get people to understand the lies, the BS that the government is perpetually telling you. I keep thinking about for whatever reason, Killian from the movie, The Running Man. Killian is lying to you. Remember Schwarzenegger takes over the satellite and tells all the people what’s really going on. That’s essentially.
Essentially, that’s what I’ve been trying to do for 25 years on air is try to get people to actually see what’s really going on. You, um, you’re paying a tax, you know, everybody talking about, Oh, we’re extending the 2017 tax cuts for everyone. said, that’s nice. You know, that’s wonderful. But again, uh, let’s, you’re going to go 20.
trillion dollars further in the debt. I get it. I get it. Republicans out there saying, well, CBO is not accounting for all this economic growth that we’re going to have. Okay. Whatever. is the budget going to be balanced? No. Um, are we going to have to continue to print more money? Yes. Meaning what? The value of what you’re making is going down. That
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is a tax, isn’t it? And it’s the most, it’s the most devious tax of them all, if you really want to think about it. Okay, it’s the most devious tax of them all, because you have, let’s say, a hundred dollar bill, a hundred dollar bill, you’re still holding onto that hundred dollar bill, but that hundred dollar bill wasn’t the hundred dollar bill several years ago.
You’re buying powers going away. It isn’t that a tax. When you do base a currency, when you print enormous sums of money because you have profligate spending in Washington, D.C., what do you think? What do you think? That the value of your money goes?
That is the biggest tax of them all, and we all pay.
It’s something that I’ve talked about at great lengths, written about at great lengths over the years, trying to get people to understand that you’ve got to outrun it. Okay? You have to out… There’s only way around that tax. Okay? No accountant… You’re the greatest accountant in the entire world. We’ve got the best at… No kidding. We have the best at Markowski Investments.
And they can’t find a loophole around inflation. They can’t. Can’t find a tax. Can’t find a write-off, whatever it may be. No accountant can do that. The only way to escape inflation is to outrun it. What are you talking about? How do I go about outrunning inflation? Well, your assets have to be growing faster.
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your assets have to be growing faster than inflation, the money that you’re putting away.
to. I’ve talked about this at Great Lancaster people. a lot of people that, know, it gets way too conservative when it comes to their money and their portfolios. And I’m like, yeah, but you know, it’s safe. It’s yielding this. I’m like, yeah, but you’re essentially losing money.
There’s certain realities out there, people that you need to recognize. And the reality is that again, know, Wall Street firms will build, they’ll have their mixes, we want 60-40 or we want 60-20-20, whatever they decide to throw out there and they’re going to stick with that. But if you are not exceeding inflation, and I’m not talking the inflation, the government numbers,
I’m talking the real numbers. Has the price of anything really gone down?
No. sure. The egg prices have come down a little bit because some more chickies were hatched after they killed off a whole bunch of them with the, what was the term, scared a bird flu or whatever it may be. I don’t even know. You outrun it by having your assets grow faster. Faster than inflation. It’s the only way. Watchdog on wallstreet.com.
