Americans To Pay Higher Taxes
How much worse can it get?
It now looks like that millions of Americans are about to pay higher taxes because of inflation which has reached an astounding 40 year high.
According to Fox, Americans will have to pay higher taxes because of rare phenomenon known as “bracket creep.” This happens when American taxpayers are pushed into a higher tax bracket even though their purchasing power remains the same because of higher prices on products.
A new analysis released by the Tax Foundation found that 15 states failed to account for inflation and another 18 states failed to index personal exemption tax to inflation.
In all, 22 states were found to have at least “one major unindexed provision” which will result in millions of Americans having to pay higher taxes.
Tax Foundation’s vice president Jared Walczak explained, “Bracket creep occurs when more of a person’s income is in higher tax brackets because of inflation rather than higher real earnings.”
