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How Inflation Erodes Your Tax Brackets
Most investors focus on inflation eating their savings or raising their grocery bills, but there is a silent wealth killer hiding in the tax code. On this episode of Inflation and Your Money, Lucas and Luna explore how nominal income growth pushes taxpayers into higher marginal brackets even when real purchasing power remains flat—a phenomenon known as fiscal drag. With the ten-year Treasury yield at its highest level in nearly two decades and core CPI ticking up to 337.8 in August, the gap between what you earn and what you keep is widening. We break down the mechanics of bracket creep using…
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