Something just occurred to me: our taxation and monetary regime is a de facto ownership tax on everything.
Let's imagine for a second that you buy $100 worth of gold. For the sake of argument, let's say that the $100 will buy $100 worth of gold, and it will also buy 100 cans of beans.
So let's say that next to the government prints more money, and so your gold is suddenly worth $105 dollars. However, you can still only buy 100 cans of beans with the same amount of money, so the amount of value you have hasn't increased.
Next let's say that you sell your gold. The government is going to look at that 5% increase and say "you made money, we're going to tax that". But you didn't actually make money, you still have 100 cans of beans worth of currency, it's just that instead of costing $100, it costs $105.
You end up getting taxed just because you held something that retained the exact same value. You aren't getting taxed for making money, you're getting taxed for holding an asset while the government inflated the currency. Tax on a tax
Let's imagine for a second that you buy $100 worth of gold. For the sake of argument, let's say that the $100 will buy $100 worth of gold, and it will also buy 100 cans of beans.
So let's say that next to the government prints more money, and so your gold is suddenly worth $105 dollars. However, you can still only buy 100 cans of beans with the same amount of money, so the amount of value you have hasn't increased.
Next let's say that you sell your gold. The government is going to look at that 5% increase and say "you made money, we're going to tax that". But you didn't actually make money, you still have 100 cans of beans worth of currency, it's just that instead of costing $100, it costs $105.
You end up getting taxed just because you held something that retained the exact same value. You aren't getting taxed for making money, you're getting taxed for holding an asset while the government inflated the currency. Tax on a tax
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