Originally Posted by
Winged Wheeler
It is not possible, it is certain. And it is not accidental, it is purposeful.
Look at the AMT. They didn't index it for inflation and it imposes punitive taxes on more middle class americans each year.
You get a COLA bump in your pay to keep up with inflation? If that happens often enough you are in higher tax bracket even though that pay increase wasn't even keeping up with inflation.
Those new medical programs that are being discussed in congress--they do not index the cost thresholds for inflation and they will tax/fee more people every year.
The government depends on your ignorance of his issue.
Here is the point to remember: If it is a tax on the rich, and it is not indexed for inflation, eventually you will be paying it too.
And that is just income tax policy, I'll let someone else talk about the hidden tax of a devalued currency.
WW
What is the hidden tax of devalued currency? Doesn't ring a bell for me. Perhaps dealing in international markets where you are paying a foreign denominated tax with weakened dollars (which is offset by a FTC). Domestically, however, the tax is just a percentage of the weakened dollars and "should" self adjust to that degree.
The regular tax brackets are indexed for inflation. How close they are to actual inflation, who knows? I wasn't aware that AMT isn't inflation adjusted. I need to investigate that. I love learning new things.