Daydreaming About Your Retirement? Biden Just Stole Your Dreams
Are you a retiree, a high earner, or a homeowner who is fed up with this record inflation under the Biden administration? Well, the news may be getting worse for you, especially regarding the taxes you will have to pay.
As the cost of living continues to skyrocket and you get weak in the knees at the gas pump, there is another big expense coming your way…higher taxes. And those who will be hit the hardest will be those who are retired, making a large income, homeowners, and residents in particular states.
Every fall, the IRS makes inflation adjustments for the coming year on a range is tax provisions. The IRS raised federal income tax packets for 2022 and adjusted other provisions like standard deductions and 401(k) plan limits.
Larry Harris, a certified financial planner and director of tax services at Parsec Financial in Asheville, NC, said regarding changes that have not been made, “It’s a hodgepodge of things that get left out. And it’s not just hitting wealthy taxpayers.”
One of the main causes for this damage on tax day is that the levies on Social Security benefits have stayed the same for decades.
“I think the intent was to have more Social Security benefits taxable over time,” said Leonard Burman, an institute fellow at the Urban Institute and co-founder of the Tax Policy Center. “And it was a way to slow the hemorrhaging of the Social Security trust fund.”
The Social Security trust fund should receive more than $45 billion from tax benefits in 2022. This is compared to $34.5 billion in 2021.
And the fixed limits have been by design, according to Burman. “I think the intent was for that exemption level to decline in value over time,” he said. “Basically, it’s a way of phasing in a tax increase or at least limiting the revenue costs.”
Another provision unchanged is the threshold for a 3.8% surcharge on investment income. This was put in place by former President Barack Obama.
And then there is the controversial $10,000 limit on the federal deduction for state and local taxes, known as SALT.
So forget those lofty retirement plans, Biden has stolen them from you.