Do you remember how much a Hershey bar cost when you were a kid? You could have bought one for a nickel back in 1965 and eaten it while watching the Celtics beat the Lakers in the NBA finals. In 1980, it was the Lakers over the Sixers in six. And a Hershey bar cost you a quarter—five times as much as it did 15 years earlier. That’s what currency debasement feels like. Not that I need to tell you.
When President Obama talks about “fairness,” think about the “middle class” he is supposedly catering to. Record debt, deficits, and digital money creation can only be described as currency debasement. Meaning the so-called rich—individuals making over $200,000 or families making over $250,000—will be caught by his “fairness” net literally overnight.
How long will it take for inflation to turn $50,000 into $200,000—but have it still feel like $50,000? Fifteen years, like the Hershey bar? I don’t know, but if history is a lesson, it could be even sooner than that.
So here are some of the taxes the “rich” will pay under proposed Obama rules for an economy “built to last”:
- Corporations will be taxed at 35%.
- Dividends will be taxed at 39.6%.
- Capital gains will be taxed at 20%.
- Obamacare/Medicare tax of 3.8% kicks in next year on “unearned income,” which is capital gains, dividends, interest annuities, royalties, and rents.
- Medicare payroll tax will be 3.8% next year.
- The Buffett rule, or the new AMT, will tax income over $1 million at least 30%.
- The top estate tax rate will be 45%.
Contrast all of that with Ron Paul. He will support a Liberty Amendment to the Constitution to abolish the income and death taxes and will turn off the lights at the IRS. He would immediately repeal capital gains taxes, which he says “punish you for success” and “interfere with your efforts to hedge against inflation by purchasing gold and silver coins.”
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