Bracket Creep Coming Soon

The informed public knows the Federal Reserve has inflated the monetary base to unprecedented levels approaching 120% from a year ago. Trillion dollar deficits unprecedented even by WWII standards have bankrupted the country. Inflation has been held at bay buy the poor economy and millions losing their jobs. The world economy has also been stagnant. But it will not last forever. Sooner or later parts of the world economy will regain fiscal soundness and growth will again occur. And here we will be in debt $36,000 for every man, woman and child in America. Our currency will devalue or we will be paying astronomically high taxes strangling our economy. One has to wonder why the Democrats and Republicans would want to put its citizens is such dire straits?

Obama announced he would like to raise the federal income tax rate to 52% on the wealthy or those making over $250,000 per year. Never mind the majority of these people are small chapter S corporations that file taxes on their personal income tax. Or maybe that’s the intent. With inflation more and more small business will be hit with the 52% rate. This will have a stifling affect on the accumulation of capital for these capitalist. Killing capitalism in the name of getting the rich. And then it will hit the people in the large cities where cost of living and wages are higher. And whalla! Instant tax hike on millions of business and people who never we or will be “rich”.

Those of us who lived through the 70’s remember it as “bracket creep” or where your wages are going up but even with inflation. But because you are now “making more” money you fall into a higher tax bracket. In the end after factoring for inflation you come out behind and the government ahead. They get a raise and you get whacked. These politicians are no better than a bunch of thugs robbing the decent honest folks.