Fighting Inflation….A Typical Solution

We all are suffering the ravages of inflation….well most of us mere peasants that is….Most of us need some help….with that said the IRS has stepped up to help out….

The Internal Revenue Service on Tuesday announced the adjustments that will be in effect for 2023 tax rates in response to soaring inflation, meaning some taxpayers could see a lower tax bill. As the New York Times reports, typically when tax rates are adjusted for inflation, the adjustments are “incremental.” Not so this year. All seven income brackets will be adjusted, with the largest shift seen at the highest level of earnings. The top income tax rate, 37%, will apply to those who earn $578,125 ($693,750 for married couples filing jointly), a big increase from this year’s threshold of $539,900 for individuals. Those who no longer meet the cutoff for the highest rate will be taxed at the next level down, 35%, and so it goes down the line to the lowest tax rate, 10%. (For details on each level see Kiplinger.)

Axios explains why this happens: “The IRS adjusts tax brackets every year to ward off ‘bracket creep’—when your salary rises to keep up with inflation, propelling you into a higher tax bracket.” For example, someone earning $34,000 per year, if being taxed at the 1980 level, would be taxed at a 49% rate. But, per the Times, those whose salaries have been adjusted to match rising inflation (which is not the case for many in the US) won’t benefit from the adjusted tax rates. The inflation adjustments were not carried out prior to 1985. In addition, in 2023 the standard deduction will increase $900 from this year to $13,850 for individuals; for couples, it will go up $1,800, to $27,700. Other adjustments include benefits for tax-free public transit and parking costs, the worth of the earned-income tax credit, and estate tax changes.

Please stop helping us out.

Just once I would like to see a corporation pay some taxes….I know I know they are the highest taxed in the world (well that is the lie we are fed to make giving them hand-outs look magnanimous)….

If I pay 35% on my income so should the corporations….it is that simple.

I Read, I Write, You Know

“lego ergo scribo”


7 thoughts on “Fighting Inflation….A Typical Solution

  1. I pay 20% tax on my pension incomes. The next rate up is 40%, then 45% for the highest earners. There have been no changes in the rates for next year.
    (Did you see Liz Truss resigned earlier today? One of the shortest-serving Prime Ministers in UK history. 🙂 )
    Best wishes, Pete.

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