Finally — after more than one year of steadily rising costs across the entire spectrum of goods and services — a bit of good economic news from “the paper of record.” The criminal debasement of our currency is actually going to “save” us money on our taxes next year! Some astonishingly Orwellian anti-logic, from the article:
“In addition to a big boost to Social Security payments, inflation could help save money on your federal tax bill next year. That’s because the federal government annually adjusts many elements of its complex tax code, including the standard deduction and tax brackets, to reflect inflation and avoid so-called stealth tax increases.
The adjustments also mean you can contribute more next year to retirement savings and other accounts that offer tax breaks, like health savings accounts.
Happy days are here again.
Cheese & crackers! Ms. Ann Carrns — the felonious freelancer who drooled out this demented drivel — ought to be locked up in an insane asylum for spinning the ongoing econo-meltdown into a welcome “tax savings” benefit.
First of all, the upward adjustments of the tax brackets and standard deductions only represent “savings” in terms of numbers, not actual value, which has been lost due to inflation. You see, the IRS, in its infinite graciousness, allows for the fact the dollar isn’t what is used to be yesterday — and will not in the near future be what it is today either. Indeed, that’s why the adjustments were put in place in the first place, as Carrns herself does explain:
“If the bracket boundaries weren’t periodically adjusted for inflation, more of your income would move into a higher bracket, increasing your tax bill.”
In other words, you’ll be paying “less” only because you are, in reality, earning less in terms of purchasing power.
Secondly, the various adjustments for inflation NEVER keep pace with the understated (rigged) rate of inflation. To therefore describe these adjustments as “savings” — or even break-even — is just as fallacious as referring to a 5% nominal salary increase — when under-reported inflation is at 10% annual — as a “pay raise.” It’s not.
More “good news” from Crazy Carrns:
“The adjustments also mean you can contribute more next year to retirement savings and other accounts that offer tax breaks, like health savings accounts.”
Again, the “more” contributions in this case only means more nominal dollars — not more actual value.
The most exasperating element of this horrible piece of financial propaganda comes in the form of an “Inflation F.A.Q. (Frequently Asked Questions) box — inserted into the body of the article — followed by a reply that is so incomplete that it raises more questions than it answers:
How insulting! Even the dullest of the befuddled boobs in the dimmest corner of the overlapping tyrannical Kingdoms of Normiedom & Libtardia already knows WHAT inflation is: It is a widespread rise in prices. But the High Priests at “the paper of record” NEVER tell the worshipers about the true HOW and WHY of inflation — even though those questions are just as easy to define as the “what.”
Here it is — in a nutshell:
“Inflation is the loss of purchasing power over time caused by excessive expansion (legalized counterfeiting) of the money supply — injected into the economy at unpayable compounding interest (usury) — relative to the amount of goods and services available. The debt virus is injected partly through the banking system in the form of loans (out of nothing) to businesses and consumers; and partly through the Central Bank’s purchase (also with nothing) of government bonds to fund deficits. The ever increasing amounts of debt money chasing a more stable supply of goods debases the value of all existing currency, thus increasing prices.”
There — in just 100 words that an 10-year old, or even a “college educated” economist can digest. Now why can’t the esteemed, and, we presume, very well-shekeled, Ms. Carrns do that for her readers? Hmmm? Truth simplifies. Liars (and idiots) complicate.
Adding insult to idiocy, Ms. Carrns seems to hold a very “inflated” (no pun intended) opinion of her analytical and reporting capabilities. From her Stinked-In bio:
“I’m a talented journalist covering personal finance, including health care, retirement, college saving, taxes and more. I excel at making complex topics understandable for readers. My column, “Your Money Adviser,” appears weekly in The New York Times.”
The most severely cracked up of crackpots always think so highly of themselves, and feel compelled to share that opinion with us — ever notice that?