McCain & Obama's ongoing debate on taxes ignores inflation tax.John McCain For McCain's grandfather and father, see John S. McCain, Sr. and John S. McCain, Jr., respectively
John Sidney McCain III (born August 29, 1936 in Panama Canal Zone) is an American politician, war veteran, and currently the Republican Senior U.S. Senator from Arizona. and Barack Obama have accused each other of offering tax proposals that would hurt the middle class. On October 18, McCain said that Obama's tax plan "would convert the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. into a giant welfare agency, redistributing massive amounts of wealth at the direction of politicians in Washington." On the same day, Obama said that "McCain wants to give the average Fortune 500 CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. a $700,000 tax cut but absolutely nothing at all to over 100 million Americans."
In the back-and-forth between McCain and Obama on tax policy, McCain has repeatedly referred to "Joe the Plumber (programming, tool) Plumber - A system for obtaining information about memory leaks in Ada and C programs.
http://home.earthlink.net/~owenomalley/plumber.html. ": Joe Wurzelbacher, the Ohio plumber who elicited Obama's comment that "when you spread the wealth around, it's good for everybody."
Media reports about the candidates' tax debate ignore the fact that direct taxation only represents part of the cost of government. When government spends more than it takes in--for programs such as the recent $700 billion bank bailout bailout
The financial rescue of a faltering business or other organization. Government guarantees for loans made to Chrysler Corporation constituted a bailout. , which both McCain and Obama supported--it must borrow the money to make up for the shortfall. When the money is borrowed from the Federal Reserve, and the Fed creates new money out of thin air so the federal government can pay its bills, then the result is a devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the dollar and a corresponding increase in the cost (in terms of dollars) of everything we buy. In short, inflation is a hidden form of taxation, and it hurts everybody including Joe the Plumber.
There is no such thing as a free lunch, and the real cost of government is what it spends, not just what it collects in direct taxes. In fact, in theory, the government could abolish all taxes and pay all its bills through the creation of money out of thin air. But such an approach would make obvious the fact that inflation is a tax.