[waterlaw]

Lost me at wages keeping up with inflation.

In Canada (unrelated to article, but similar.) I'd need a 16% raise to keep pace with inflation. Since 52% tax bracket.

Meanwhile homeowners do nothing and have tax-free returns. Yearly returns larger than my net salary.

Collapse is a matter of perspective. Being in the working class sucks and everyone knows it.

This is a much better article:

Collapse Won’t Reset Society https://palladiummag.com/2022/04/11/collapse-wont-reset-soci...

[honkdaddy]

As a Canadian currently living in the States, I think it's worth pointing out that our housing market is currently one of the most inflated in the world which affects nearly every facet of economic life for Canadians. Every day there's increasing pressure on the provincial and federal governments to somehow settle down the price of housing.

It will take time, but I'm confident things will change.

[gonzo41]

I'm Australian and we have the same problem. I lay blame on the banking sector for being unwilling to engage in small business risk and thus causing most small investor money to flock into real estate. Whilst OP talks about year on year 'gains'. You have to sell to see them, and then you're just buying in the same market. Though, the access to equity is not nothing.

[jimmaswell]

> Meanwhile homeowners do nothing and have tax-free returns. Yearly returns larger than my net salary.

What do you mean, their theoretical home value going up? What good is that until or if they sell, better home equity loans?

[s1artibartfast]

In the US at least, there are many ways to avoid paying any taxes on home sales. You get a 500k tax deduction every 2 years for primary residence swaps, or do a 1031 exchange to avoid taxes on rentals.

I had a peer and we both made 120k with 35% taxes. In the last 10 years he made 2.5 million trading up houses tax free. Roughly 2x our salary per year tax free.

A lot of jealousy going around. I try to say good for him, but a lot of people have more trouble with that.

[zionic]

>35% taxes at 120k

Your real tax rate is likely close to 50%. You’re almost certainly not including payroll tax, sales tax, and property taxes in that number at that income level.

[s1artibartfast]

I was talking abut income tax, so Parole yes, sales and property no.

I also excluded registration and Licensing fees, and capital gains.

[monkeybutton]

I think what you're complaining about is dangerous in the long term. People are becoming frustrated and don't have relief. I bet we're going to see more unrest like the convoy protests.

[grenoire]

I don't see how the tax rate impacts your inflation pace. Your net wage increases with the percentage raise you get as well. W * R * (1 - T) / W * (1 - T) = W * R / W = R, no? (Wage, Raise, and Tax as the variables).

[travisjungroth]

Progressive tax brackets make raises sublinear. If the bracket thresholds raise with inflation, it evens out. I don’t think they have.

Round number example: $150k gross, $100k net and $100k of expenses. Expenses go up to $108k. If your top marginal tax rate is 50%, you need a $16k raise to match it. 10.6% raise (not 16% though).

[zionic]

Bingo. Inflation is a stealth tax with regressive (socially) tax curves.

[nivenkos]

At least as a Canadian you can get a TN visa and move to the US - enjoy those $200k+ salaries!

[EForEndeavour]

And, as we all just read, the definite lack of collapse :)