Why is the IRS std. deduction for singles only 5350? Shouldn’t it increase at the same % your income increases
October 31st, 2009Joe . asked:
Exactly how is it figured. I assume it is tied to inflation or something or only goes up by a few % points each year, but how is that right that your income goes up by 50%, but your deduction only goes up by 5%.
Exactly how is it figured. I assume it is tied to inflation or something or only goes up by a few % points each year, but how is that right that your income goes up by 50%, but your deduction only goes up by 5%.
November 1st, 2009 at 1:11 am
The standard deduction is set by law, not by income. It’s indexed to inflation. Your wages are NOT indexed to inflation if they went up by 50%!
November 1st, 2009 at 1:43 pm
This is the precious “progressive” or “graduated” income tax system at work. Remember how “the rich should pay more”? Well the more you earn, the greater the PERCENTAGE take from the government. If the deduction were a percentage then we would be told how “the rich” are getting unfair tax breaks.
Every time you hear a pol use a term like “the rich” you SHOULD note that he will NOT define it and very likely YOU are “the rich” to him.