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The unspoken tragedy of this is how the IRS limits for "wealthy" were developed in 1913 when $250K as upper-limit was equivalent of several million dollars now.
by _red 7y ago
The unspoken tragedy of this is how the IRS limits for "wealthy" were developed in 1913 when $250K as upper-limit was equivalent of several million dollars now.
They seem to have zero interest in re-calibrating those high brackets into something more meaningful to account for the 100 years of continually inflation.
- eli 7y agoweird how tax cuts always seem to be indexed to inflation while tax rates aren't
- Bartweiss 7y agoIt certainly doesn't help matters that housing prices have massively outpaced inflation for many years. Cost of living still mattered when the brackets were set, of course, but there weren't the common and enormous differentials that we see now. At $250k it's perhaps less relevant, but it's basically impossible to assess how "high income" $50k/year is when rent is anywhere from <15% to >50% of that value.