RDD_1210
Forms his own opinions
- May 13, 2010
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I'm not sure how you can be taxed 100%, turd.
Because you have no intelligence that's why.
It's very EASY to understand if you OPEN YOUR MIND to reality.
If you buy a stock at 5,000 dollars in 2000, and sell it in 2010 for 6,000 (but with inflation you really lost money).
You lose money, thus they are taxing 100% of the suppsed "gain." Watch the video.
That's a fundamental (and elementary) misunderstanding of what's happening here.
Let's say you invest $5,000 in 2000. You made a decision to allocate $5,000 in 2000 towards what you believe to be the most productive place (you could have put it into TIPS and never worried a wink about inflation, right? Right.)
Ten years later, the total value of that investment has grown to $6,000. You now have an investment worth $1,000 more than you paid for it. That's a capital gain of $1,000 - And that $1,000 is paid to you in 2010 dollars.
And you are assessed a tax on the realized gain - in this case, a tax of $150. You are paying a tax of 15% on the realized 2010 gain. You walk away from this transaction with $850 more dollars than you started. The fact that you chose an investment that does not grow as fast as inflation isn't relevant. What's relevant is that you now have $850 more than you would have in 2010 if you invested the money in a box underneath your bed.
Somehow, I know she still wont get this concept.