After getting my taxes done (I don’t wait until the last minute) I was alerted that, once again, I overpaid and therefore will get a return. Most people are overjoyed by receiving a tax return, I’m not. Why? Because getting a tax return indicates that you paid the government more money than you were forced to, you basically gave them a negative interest loan. Yes, I said a negative interest rate loan, not a zero interest rate loan as most people state.
When you give a zero interest rate loan you’re repaid the same purchasing power as you originally loaned out. Inflation, being a hidden form of theft, ensures you receive less purchasing power than you overpaid. Let’s say inflation was at 10% between 2011 and 2012 and you overpaid by $1000.00. Since inflation devalued your money by 10% the purchasing power you received back through your 2012 tax return is only $900.00. Of course inflation was more than 10% between 2011 and 2012 so my example actually paints a rosier picture than that inflicted by reality.
Getting a tax return means you’re getting back less than you overpaid. Inflation is one of the most insidious forms of theft by the state because most people don’t outright see it and therefore forget about it entirely (most people also don’t realize that inflation is caused by state manipulation of the currency and therefore is a form of state theft).