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AlbertJayNock

The Return Of Bracket Creep


Bracket creep, for those unfamiliar with the term, is when someone is getting pushed into a higher tax bracket because of inflation. People don't talk about it much anymore for the same reason they don't talk much about leprosy or the bubonic plague. It's a problem that had largely been eliminated, thanks to Ronald Reagan's tax policies. Yes," had". I used the past perfect for a reason. It's about to make a comeback.

According to this Wall Street Journal article, the health care bill that passed the house recently contains taxes that kick in at income levels that are not indexed for inflation, including a surcharge for people making more than $500000 a year.

This is one of the worst features of the bill. Critics tend to focus more on the mandatory insurance feature. There's a good reason and a bad reason for that. The good reason is that the mandatory insurance is so damned intrusive. The bad reason is that the insurance mandate will kick in now, but the bracket creep won't be felt for many years.

But it will be felt. It's possible my niece or nephew will someday be making $500K , and at least some of that will be due to inflation. So they'll be taxed as if they are making $500K in 2009 dollars, which will not be the case. The same will probably true of a lot of my students. And that's just wrong.

Kudos to writerspleasure for his post calling my attention to these new taxes.
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the kids are going to start realizing their rock star sold them lies and vapors.