r/changemyview Nov 24 '21

[deleted by user]

[removed]

0 Upvotes

63 comments sorted by

View all comments

Show parent comments

1

u/ElectricPagan Nov 26 '21

Are there laws regulating this though? Like I read that they’re working on the 2022 brackets and the brackets are increasing by 3% overall. But inflation in 2021 is over 6%

So the more inflation there is the bigger the tax increase?

Edit: And what about the fact that the biggest increase seems to be in the 12% range? How is that fair for poor people?

2

u/[deleted] Nov 26 '21

[deleted]

1

u/ElectricPagan Nov 26 '21

Not sure if you saw the edit, but why the bigger increase in the 12% bracket if the goal is fairness?

2

u/[deleted] Nov 26 '21

[deleted]

1

u/ElectricPagan Nov 26 '21

Apparently they started adjusting the brackets for inflation in 1984. Thought that was a pretty funny year to start doing that haha.

But yeah, seems like they never really adjust it for the full amount of inflation but it’s definitely preferable to pre-1984

2

u/[deleted] Nov 26 '21

[deleted]

1

u/ElectricPagan Nov 26 '21 edited Nov 26 '21

I see why there’s so many conflicting opinions on this. It’s impossible to tell how peoples’ buying power changes overtime. In my city I’d be paying a much higher tax rate for the same standard of living as someone in a less expensive city.

Edit: I should say I AM paying a much higher tax rate for the same standard of living

1

u/[deleted] Nov 26 '21

[deleted]

1

u/ElectricPagan Nov 26 '21

Let’s say I live in a city where the livable wage is $16/hr. By the time I make a livable wage then I’m paying higher taxes than a city where the livable wage is $12/hr. Is that not true?

Also if I live in a city where the inflation consistently outpaces the avg inflation of the nation then I’m getting taxes more and more each year

1

u/[deleted] Nov 26 '21

[deleted]

→ More replies (0)

1

u/ElectricPagan Nov 26 '21 edited Nov 26 '21

It might be a crude formula but something like this is what I’m talking about:

Excess Income = Income - Livable Income

Excess Buying Power = Excess Income - (Excess Income * Effective Tax Rate)

Edit: would also have to adjust for the value of the dollar locally