(DailyDig.com) – On April 1, the US Treasury said that President Biden’s budget proposal would increase taxes by almost five trillion dollars over the next ten years. This includes an increase of almost two trillion dollars for the wealthy and their estates, as well as an increase of almost three trillion dollars for businesses.
The budget includes an extra 104.3 billion dollars for the IRS, added to the 80 billion dollars they received in 2022. This adds another 341 billion dollars to the IRS over the next ten years.
For middle-class families, their incomes had given them a chance for a comfortable life. If they stuck to their budget, it allowed families to purchase homes, provide for quality meals, and enjoy some other comforts beyond subsistence.
Today, these families have had to deal with inflation, making the cost of their comfortable lives nearly beyond their reach. Their financial situation has hindered their ability to provide necessities for their families.
In 2021, only one-half of the families in the US were in the middle class, as stated by the Pew Research Center. In 1971, Pew identified 61 percent of families as middle class, a drop of eleven percent in forty years.
The income of middle-class families has increased over the last few decades. However, it is still not sufficient. According to Pew, the average income for middle-class families in 2020, $90,131, was fifty percent more than in 1970, $59.934. The surging inflation of the last three years has caused the cost of living to rise without an increase in wages.
Americans will face an increase in the amount of taxes they will be required to pay. Families with children will not see as much benefit from the tax credit for children as they used to. High inflation has deteriorated the value of the tax credit for each child.
Since inflation isn’t indexed by the child tax credit, the last three years of inflation burden working families at tax time.
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