High taxes, rising costs, crime spur exodus to red states: Jonas Max Ferris, Danielle DiMartino
Fox News Contributor Jonas Max Ferris and Quill Intelligence CEO Danielle DiMartino discuss the population exodus from Democrat states to GOP states over taxes, cost of living and crime on ‘Cavuto Live’.
Millions of Americans could be in store for higher taxes as a result of stubbornly high inflation.
That's because of a phenomenon known as "bracket creep," which happens when taxpayers are pushed into higher-income brackets even though their purchasing power is essentially unchanged due to steeper prices for most goods.
Although the IRS adjusts federal income taxes for inflation, a recent analysis published by the Tax Foundation shows that 15 states fail to account for inflation when drawing the brackets for taxes on wages and income. An additional 18 states do not index personal exemption tax to inflation.
Altogether, 22 states have at least "one major unindexed provision," which could mean higher taxes for millions of taxpayers who are already confronting the steepest inflation in decades.
NEW IRS TAX BRACKETS TAKE EFFECT IN 2023, MEANING YOUR PAYCHECK COULD BE BIGGER