Wages up 5% ... minus 2% to pay the tax on that 5%
Wages and income may be up 5%, but don't forget that that 5% will be taxed.
Payroll taxes+Federal income taxes+state income taxes+county & city income taxes+more sales taxes because everything is more expensive+real estate taxes because the effect of the government's low mortgage rate was to inflate property values. All together will easily eat up almost half of that 5%.
So: 5%-2% = 3%
And: 9%-3% = 6%
So even if you get a 5% wage/income increase every year and inflation sustains at 9%, we will fall behind by 6% every year.
Payroll taxes+Federal income taxes+state income taxes+county & city income taxes+more sales taxes because everything is more expensive+real estate taxes because the effect of the government's low mortgage rate was to inflate property values. All together will easily eat up almost half of that 5%.
So: 5%-2% = 3%
And: 9%-3% = 6%
So even if you get a 5% wage/income increase every year and inflation sustains at 9%, we will fall behind by 6% every year.
80-89, M
