No, the value of money certainly does not seem as great as it once was, which is why many of us empathize with Social Security recipients’ plight for a cost of living adjustment and associated increase in their benefits. The issue, however, is that as one hand giveth benefits increases to Social Security recipients, another hand must taketh such money away from others, so as to account for the increase in benefits expenditures. As it goes in this story, the Internal Revenue Service acknowledges that these adjustments for inflation are expected to affect virtually every taxpayer. Most notably, an estimated 10 million high-income workers may be paying a bigger tax bill next year (on the first $110,100 worth of income received, instead of the current first $106,800).
To learn more about what the increase in Social Security benefits could mean for you, go here.