Replies to post #42906 on A.I.M. Users Bulletin Board (AIMUSERS)

[Toofuzzy]

Hi Tom

What do you mean as cash normalized on yield?

Go up to historical yield on savings accounts?

As a kid I seem to remember 5% on my passbook savings when rates were still fixed before MM ACCOUNTS came into existence. Am I mistaken on that rate?

If inflation was 3%, 5% would seem fair.

I have decided that it is in the government's interest to have inflation.

Lets say for example taxes are 50% to make the calculations easy.

If an interest rate is 1% the IRS gets .5% of your savings.
If interest rates are 5% the IRS gets 2.5% of your savings.
If interest rates are 10% the IRS gets 5% of your savings.

It is for this reason that I feel that the IRSshould only tax earnings and closely held corporations.

Get rid of tax on bank accounts, dividends, and capital gains. Get rid of corporate taxes.

Instead institute an inheritance tax of 50% above some modest level that can't be avoided by donations or gifts, etc ( no loopholes)

By the same token, get rid of ALL interest deductions.

House prices will go down and favor savers with lower income and interest rates in general will stay lower without the incentive for the government to raise rates.

End of rant.

Not always
Toofuzzy