Ralph Benko, writing in his capacity as chairman of the Capitalist League at Newsmax, on why indexing assets for inflation is the Third Law of Capitalism and important to bring about a strong recovery from the pandemic panic. Excerpt:
Now let’s look at the Third Commandment: “All assets will be indexed to inflation for the purpose of calculating capital gains.” Why is this important enough to be a Commandment?One of the core doctrines of Communism, right there in The Communist Manifesto, is that the middle class (“the bourgeoisie”) is evil, oppressing workers (“the proletariat.”) The Communist prescription? “Class struggle.” The workers must confiscate the life savings (“capital”) of the middle class.
No really! You could look it up!
The Communists want to take our life savings. They’re not shy about their goals. Some leading Democrats are openly proposing a wealth tax. Supposedly only on the super-rich. Ha! The original income tax was a tiny percentage on the top income of the super-rich. See what happens when we let the camel stick his nose into our tent? Don’t fall for it.
And there’s already a wealth tax on everyone who owns property. The government taxes the nominal “profit” on the sale of an investment even if sold at real cost or a loss.
Suppose you invested $1,000 20 years ago and the investment was just breaking even, just keeping up with inflation. For you to just break even you would have to sell it for $1,500 which, due to inflation, would buy the same amount as the $1,000 you invested.
When you sell it, Uncle Sam now makes you pay taxes on that phony $500 “gain.” That’s not a real gain. It’s just breaking even. Uncle Sam is confiscating your savings. Sneaky!
If you’re a Communist that’s great. Sam’s doing exactly what the Communist Manifesto calls for: “despotic inroads on the rights of property.” Congress confiscating capital — looting our savings — and giving it to their donors or voters? Hey! The rhetoric about doing right by working people is the sugar coating on the Satan-sandwich of communism.
Communists gloat on their plan to loot the middle class’ life savings. The rest of us should be shocked. Capitalists have a more noble goal. Per Adam Smith, our mission is to create “universal opulence which extends itself to the lowest ranks of the people.”
Meaning, capitalists are out to make even poor people rich.
The Communists? Make rich people poor.