Posted on 12/04/2021 3:59:29 AM PST by MtnClimber
We hear that inflation is only “transitory,” which is a vague enough sounding word to make the threat of your money losing value seem benign. And when that threat became real after months of high inflation, Federal Reserve Chairman Jerome Powell eloquently stated “’Transitory’ is a word that people have had different understandings of.” Americans know that inflation poses a very significant threat to their long term financial wellbeing, especially wage workers and the elderly. And while many in our government seem unconcerned about inflation, they’re also taking steps that indicate they know it’s around for the long term.
1.Social Security Benefits Will Increase by 5.9% Next Year
Social Security benefits increase with inflation, and next year’s cost-of-living adjustment is the highest it’s been in almost 40 years! If most workers got a 5.9% paycheck increase, they would be over the moon. However, even with this increase, retirees will have a difficult time protecting their savings from inflation. Social Security benefits have lost an estimated third of their value since 2000 due to price increases, according to a Citizens League study.
2. Indexing Retirement Account Contribution Limits to Inflation
401(k) and IRA contribution limits may increase every few years, but increases are not indexed to inflation. For 2022, the 401(k) contribution limit is increasing by $1,000, but the IRA contribution will remain the same the fourth consecutive year. Interestingly, the Securing a Strong Retirement Act includes a provision to automatically increase retirement account contribution limits with inflation. It seems our government is anticipating long-term inflation and want to account for it in this one area of the tax code.
3. Higher Inflation = Higher Taxes?
Does the government actually get more tax revenue if there’s high inflation?
(Excerpt) Read more at americanthinker.com ...
Almost everything communists think they know is wrong. Often they believe their own lies.
Once the inflation ball starts rolling, it’s hard to stop. Maybe the Dems will get killed in the next election. Figuratively.
Venezuela del Norte.
The ONLY good thing that could arise from higher inflation is higher rates on savings products outside the stock market casino.
They murdered American economoney with the fakedemic to replace it with a world wide digital slave currency.
They ANTICIPATE it? They should; they are the cause of it.
“Transitory” is the new “unexpected”.
L
Biden coming through for his white liberal 'elite' friends - if we look hard enough will we find the 'reward' for Biden's Chinese friends too?
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