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Trump-Tax and Inflation

12/28/2017

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The Trump-Tax plan clearly does offer very nice monetary rewords for the rich. The estate tax as a simple example will go away in 2024.  That says if the Donald can live another 7 years, his kids will reap perhaps a billion dollar tax savings in their inheritance . That's just not right.

And do I understand that the middle class can expect to see perhaps $400 a year in tax savings starting next year?  Wow isn't that great.  

The annual wage of $75,000 has been used to talk about who will get the windfall of $400. The target inflation rate for the Fed is 2%.  That means that in a typical year, what cost a dollar last year costs $1,02.  That's 2% more.  What cost you last year $75,000 assuming you spent the total earning, will cost $76,500.  (2% of $75,000 is $1,500.)  So you're going backwards just a little tiny bit slower. 

I'd rather have the $ billion. 
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