Loading ...When the US middle class was prospering, from 1945 to 1975-80, (before importing consumer products) we got constant raises, to keep up with the inflation, and unwittingly pushed us up into higher and higher tax brackets.
Unfortunately, resulting in higher taxes but NOT higher living standards. In other words, higher taxes with no real better headway.
Nowadays? The middle class LAGGING INFLATION since 1980 onward IMPORTING is a lot smaller, and because the wages have LAGGED higher taxes and higher living expenses, more and more middle class folks have been pushed or falling into LOWER tax brackets. Many pay NO taxes, infact ABSORB taxes now
Many people now qualify for Medicaid, food stamps, and earned income tax credits. Which in turn puts more pressure, higher income and property taxes on the remaining middle class.