The Governments Hidden $500 Billion Inflation Tax on Savings

Image by 401K via FlickrThere is a hidden and deeply unfair "tax" that is costing US savers in excess of $500 billion per year. Through forcing interest rates far below the rate of inflation, the government has effectively created a tax on savings that not only takes all real interest income, but quite deliberately confiscates wealth from tens of millions of savers every year - for the direct benefit of the government.

As will be demonstrated with step by step, simple illustrations, the government is imposing the economic equivalent of a 90% income tax on savers. The amount taken annually from savers is equal to more than half of all individual income taxes, and is nearly three times as large as total corporate income taxes.

The tax is not uniformly imposed, but instead targets older middle class savers in particular. The effects include invalidating decades of financial planning, and potentially impoverishing millions of current and future retirees. More...