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Effect of Inflation on Capital Budgeting

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

Many thanks in advance.

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....

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Simple and effective! Thanks a lot Ahmadmadoff!

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any time, best of luck

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

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haha nice example ahmad

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

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Amazing example

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