New Tax Bracket For Middle Class Americans

This is Biden’s fault.

Thanks to President Biden’s inflation millions of Americans are about to have to pay more in taxes this year.

According to Fox, the reason for these higher new taxes is due to an economic phenomenon known as “bracket creep.” Bracket creep is when taxpayer get pushed into a higher tax bracket even though nothing regarding their finances have changed and their purchasing power has remained the same but the costs of goods are higher.

Even thought the IRS adjusts income taxes for inflation, the Tax Foundation shows that 15 states fail to consider inflation when drawing up tax brackets for taxes on wages and income. What’s worse is another 18 states do not index personal exemption tax to inflation. 

In total, 22 states across America have at least “one major unindexed provision,” which will result in higher taxes for Americans even though they are already dealing with inflation.

The Tax Foundation’s vice president of state projects 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.”