Taxation and the middle class

[danbrotherston]

This article is a good explanation why a property tax increase of less than inflation is actually a tax cut. https://www.thestar.com/news/gta/2015/03...eenan.html

I mean, this article is focused on property taxes, but this is important to remember about money in general. Money is a fake thing, the only real thing about money is it's purchasing power. If you have less or more purchasing power, that's an increase or decrease. The number that represents it is irrelevant.

If the dollar value of taxes goes up by exactly inflation, but you don't get a raise, taxes stayed the same but your purchasing power decreased, talk to your employer about why your labor is worth less this year than last.

Basically any time you are comparing dollar amounts in different time periods, there should be an inflation adjustment.