Effect of Inflation on Capital Budgeting understand, wealth, somebody, government

bleach

Could somebody pls help me understand the statement below:
"Inflation essentially shifts wealth from the tax payer to the government"!

Many thanks in advance.

senlinlang

yeh used somethin i am desperate for but wont get till june 5 lol
All money paid for mocks, bks, vids...

Newhuman

Amazing example

WarrenB1

haha nice example ahmad

iteracom

Simple and effective! Thanks a lot Ahmadmadoff!

bolligerallstar

any time, best of luck

there is even gain to me out of answering, now the answer is engraved in me for ever.

RMontgomery

correction

revenue before=

is supposed to be revenue becomes (ie after inflation)

a type on darn phone

and also remmber, i made this simple and assumed in case A you are not paying any tax at all

but the same logic still works if you set up an example where you were paying taxes in the first place, you will just go on to pay more taxes in real terms

so insted of taxes being

0+more
you have

original+more....