Lifetime tax pressure.

I wrote a short program that roughly calculates the tax pressure over a lifetime, with the impact of inflation on past wages.

Output examples:

---
45 years of work
Inflation: 2%
Tax: 30%

Lifetime tax pressure: 54.486 %
---


---
45 years of work
Inflation: 2%
Tax: 0%

Lifetime tax pressure: 34.98 %
---

I think this output is interesting because it shows that without any regular taxes, the *minimum* inflation over 45 years of work is equal a ~35% tax pressure.

---
45 years of work
Inflation: 2.3%
Tax: 54%

Lifetime tax pressure: 71.817 %
---

This output is based on the average tax pressure in Sweden, with an average historical inflation of 2.3% since the Riksbank (central bank) was established in 1668.

---
45 years of work
Inflation: 7%
Tax: 0%

Lifetime tax pressure: 71.603 %
---

This output is based on a yearly inflation rate of 7%, without any taxes. This is the likely inflation rate we have in the West when we account for asset inflation from government + central bank moneyprinting.

---
45 years of work
Inflation: 7%
Tax: 30%

Lifetime tax pressure: 80.122 %
---

This is the output of an inflation rate of 7% over 45 years of work, combined with a 30% tax rate.

Conclusion:

Inflation is a significant tax levied by governments and central banks as they expand the monetary supply.

These figures account for cumulative inflation: the savings of year 1 is inflated for 45 years, while the savings of year 40 is inflated for 5 years, etc.

This is not only a theft of income but a grand theft of life and time on this planet.

Bitcoin fixes this by allowing individuals to opt out of the hidden tax of inflation.

Every individual owns themselves and the fruits of their labor. (Paraphrasing John Locke, 1690)

A final consideration is to add living expenses to the calculation. As inflation drives up the cost of living, this also represents a loss of purchasing power. I have left this out so far due to it being difficult to calculate, especially since wages must increase *somewhat* to account for increased costs.

#Inflation #Moneyprinting #Tax #Taxation #TaxRate #InflationIsTheft #Bitcoin