I was reading my AARP Bulletin tonight and came across and interesting article. We have all heard about the chained CPI, which is a new way of calculating the cost of living adjustents to Social Security and veterans benefits. If adapted this would decrease annual increases in benefits. However, there hasnt been much said about how the chained CPI would increse income taxes for the middle class. The IRS makes adjustments based on inflation to, income tax brackets , standard deductions, personal exemptions and more. The adjustments prevent putting taxpayers into higher brackets and making them pay more because of inflation. The chained CPI would would cause smaller increases than the current formula, so more of your income would be taxed at a higher rate. This impacts a lot of middle income families. Taxpayers with incomes of $10000 to $20000 would have their taxes rise by almost 7 percent over 16 years. The higher the tax bracket the lower the percentage increase. The increase for those earning more that $1 million a year would be .2 percent over 16 years. SO INADDITION TO CUTTING SOCIAL SECURITY BY $127 BILLION OVER 10 YEARS, THE CHAINED CPI WOULD RAISE INCOME TAXES BY $142 BILLION. And, all on the backs of the middle class.
Posted on: Wed, 12 Jun 2013 02:26:35 +0000
Trending Topics
Recently Viewed Topics
© 2015