Inflation is a constant threat to investors, who have to
remain vigilant against its steady erosion of their portfolio's
purchasing power. Yet with inflation having been under control
lately, now's a good time to look at what impact inflation might
have on your taxes when prices start to rise more sharply.
In the following video, Fool contributor Dan Caplinger looks
at the various ways that inflation affects your taxes. As Dan
notes, with tax brackets and deduction and exemption amounts tied
to rising prices, earning a constant income actually leads to
modest tax declines over the long haul. Yet if your income rises
at the same rate as inflation, the net effect is typically a
wash. Dan points out, though, that the biggest challen
investors face is that capital gains and investment income are
taxed without accounting for the impact of inflation. Taxes are
something that every investor needs to take into account in
choosing investments and assessing returns.
Nearly every American taxpayer faced a big tax increase when
2013 began, with higher payroll taxes affecting every worker
and several new taxes on upper-income taxpayers. But you can
fight back against higher taxes
by using the tips you'll find in the Fool's latest special
report. You won't want to miss the easy-to-follow strategies
you'll find inside, so to get your completely free copy of the
click here right now
and start saving today!
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