Quote:
Originally Posted by redpoint5
My assumption is that tax rates will increase over time, with the government funding more things that we used to privately be responsible for. There's zero chance we don't have at least single-payer health insurance by the time I retire. That money has got to come from somewhere, and tax rates will be higher in the future.
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I'm sure people thought the same thing when Medicare passed but in fact the opposite happened - Federal income taxes are lower today than in the 60's.
Graphically from the 60's to early 00's. And then it has dropped even farther since then to 13.3% in 2019 which is almost 10% less than in the 60's.
https://taxfoundation.org/publicatio...come-tax-data/
However, the biggest impact on your tax rate is not the feds - it is your income in retirement which is related to how much money you have accumulated. The vast majority of people do not have a massive investment portfolio that is earning more investment income in retirement than what they made during their wage earning years. In fact most people make less in retirement than while they are working - and therefore pay less in Federal income taxes.