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This highlights a really fascinating problem that I'd love to know more about, if anyone has info: Are regulatory thresholds (cash or otherwise) pinned to infl

by RickS 9y ago

This highlights a really fascinating problem that I'd love to know more about, if anyone has info: Are regulatory thresholds (cash or otherwise) pinned to inflation or some kind of purchasing index? Do they all just tighten around our neck at ~3% year? I'm not cynical enough to assume this is by design, but perhaps am enough to think that once it's in there, the bug becomes a feature in the eyes of regulators.

aidenn0 9y ago
In the US, most aren't, but some are. When they are tied to inflation it's usually the CPI. In some cases not tying it to the CPI appears to be lack of foresight, in other cases it's a compromise, just like e.g. tax cuts that expire. The party that wishes to not raise the threshold is hoping that they will have more political clout down the road, the party that does have power can conserve political capital and get a "win" in the eyes of their constituency.