Explain Why $1 Today Is Not Equal to $1 in the Future

question 116

Essay

Explain why $1 today is not equal to $1 in the future. Why is understanding this concept particularly important for tax planning? What tax strategy exploits this concept?

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Definitions:

Existential Import

In logic, the implication that a statement has regarding the existence of the subjects it mentions.

Referents

The actual objects, actions, or concepts that words or symbols represent or signify.

Subcontrary

In traditional logic, a relationship between two statements where both can be true but both cannot be false.

Space Cowboy

A colloquial, imaginative term often used to describe someone who explores or navigates the domain of outer space in a freewheeling, adventurous manner, popularized by science fiction and music.