I know it isn't, I'm just asking cause it seems that's the logical way to do it. Say I put $3M into a savings account if I get 4% annually, IRS calculates that I made $120,000 that year, and they want 35% of that, which gives me only a 2.6% annual return, That does not even cover inflation in it's lowest possible rate?!! What do you think? Also what is the percent that a company has to earn on it's investment, so that after calculating taxes and then inflation, it comes up with an equal amount it started with? I believe it is 30%. 30% (return on investment) - 35% (taxes on return) = 19.5% (return on investment after taxes) - ~20% (inflation rate on investment) = 0% (return) that's not even funny!