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Last edited Fri Dec 13, 2024, 12:51 PM - Edit history (3)

And it's not a "rich person's" tax -- in high tax states this snags a lot of middle class people too.

It was part of tRump's so-called tax cuts as a greedy, vicious, and mean-spirited weapon to punish blue states that have higher state tax rates in order to provide a more-than-bare-bones safety net. I've been real close to the $10,000 SALT deduction limit myself.

And as inflation continues, whether 2%, or more (like if fucknuts starts a tariff trade war or deports millions of undocumented workers), it will snag more and more regular people, which was part of the greedbangers' strategy all along.

Just like income taxation of Social Security benefits started out as only taxing high income people at the beginning, but now about 40% of seniors pay some income taxes on their benefits [1]. That's because the income thresholds were never adjusted for inflation. The income threshold for taxation of SS benefits for singles has always been a very modest $25,000/year (very modest by today's standards). But back in 1980, that amount had the purchasing power that $92,000 has today.

[1] Google: what percent of seniors pay income taxes on their social security benefits?
https://www-origin.ssa.gov/benefits/retirement/planner/taxes.html#:~:text=About%2040%25%20of%20people%20who,in%20addition%20to%20your%20benefits.

BLS Inflation calculator: https://www.bls.gov/data/inflation_calculator.htm