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Typically, you need a little more to make up for the difference in how much more taxes you pay at the marginal end vs the average for your total income... The
by onlyrealcuzzo 4mo ago
Typically, you need a little more to make up for the difference in how much more taxes you pay at the marginal end vs the average for your total income...
The median earner with a standard deduction would need a ~4.7% raise to stay even...
"Inflation" is also increasingly distributed unevenly. The top 10% continues to make up a larger and larger portion of spending. It is entirely possible for ~4.2% inflation to be substantially higher (or lower) for the median household than the overall reported number.
- madcaptenor 4mo agoTax brackets are also inflation-adjusted, so shouldn't that cancel out?
- nothercastle 4mo agoNo it pushes you into a higher tax bracket earlier so also acts as a tax increase
- kennywinker 4mo agoI think the point is the tax brackets are supposed to be inflation-adjusted. So all the brackets go up 4.2% too. Idk if the implementation details make this actually work out 1:1 but that’s the idea.
- madcaptenor 4mo agoThat's what I was thinking.
- khuey 4mo agoMost of the relevant numbers in the American tax code are inflation adjusted, but not all of them. The biggest ones for people on this website are probably the value of the Child Tax Credit and the thresholds at which the Net Investment Income Tax/Additional Medicare Tax kick in.
- asdff 4mo agoDon't forget prop 13 in california, probably many beneficiaries of that policy on this forum.
- khuey 4mo agoProp 13 is the other way around, inflation is to the taxpayer's advantage.
- onlyrealcuzzo 4mo agoImportant distinction: to the "HOME OWNER"s advantage.