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That’s what really blows my mind. Why aren’t all thresholds automatically indexed to inflation by default. Especially in tax matters!


Because inflation ≠ inflation and what do you want to index it to?

Seriously: If it's related to investment, what makes the price of tomatoes more appropriate than the Dow Jones index as a basis for the threshold?

One good answer there is to trust your future self to choose better than some simple mechanism would do. So that's what legislatures often do.


It means that every few years politicians can roll out "tax cuts" which are actually just bracket adjustments.




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