Some have alleged taxes will be going up in 2021. Are they right?

The Tax Cuts and Jobs Act of 2017 (TCJA) is the hallmark legislation of the Trump administration, and no American taxpayer was unaffected. But was this legislation a Trojan horse that could lead to you paying higher taxes starting in 2021?

The Joint Committee on Taxation released a chart indicating that federal taxes for those making between $10,000 and $30,000 would actually go up starting in 2021.


A table describing distributional affects of the TCJA by income. Joint Committee on Taxation

The new tax brackets for 2021 have the same rates, and the only changes are the income brackets that have been adjusted for inflation. What's driving this higher tax rate for these particular brackets?

That links back to the Republican efforts to repeal the Affordable Care Act. The TCJA lowered the individual mandate penalty, the penalty paid to the government if you do not have a health insurance policy, to zero. This means there will be no tax implications to not carrying an insurance policy.

Under the ACA, individuals within 100% and 400% of the federal poverty level were eligible to receive tax credits to offset the costs of these plans. With no individual mandate penalty, the expectation is that less people will sign up for insurance. Less people signing up for insurance will lead to less people receiving the tax credits, which would lead to an increase in the average tax rate across this group.

That doesn't mean that you are in the clear if you make above $30,000. Remember how income brackets are adjusted for inflation? The TCJA also changed how inflation is calculated. Tax brackets used to be adjusted off of the Consumer Price Index (CPI), an index that tracks the prices of goods and services across different geographical areas.

The Consumer Price Index tracks how much more you are paying because of inflation each year. But the IRS now measures inflation against the chained CPI. The idea behind the chained CPI is that if prices rise, customers will change their purchasing habits and substitute goods. For example, if the price of orange juice rises faster than the price of apple juice, chained CPI assumes that people will lower the amount of orange juice that they are buying and substitute that by buying more apple juice. CPI tracks a fixed basket of goods while the basket of goods tracked by chained CPI changes periodically.

Because chained CPI assumes that consumers are going to seek out substitutes for products with rising price tags, it rises more slowly than traditional CPI. Thus, the IRS will adjust tax brackets upward more gradually, and you are likely to move into a higher tax bracket faster than you would under the old calculations.


A graph showing chained CPI rising at a much slower rate than CPI from 2000 to 2020 Chained CPI calculates the cost of everyday goods rising more slowly than calculations based on traditional CPI.Federal Reserve Bank of St. Louis


If the cost of consumer prices rises 2% and you receive a similar 2% raise, normally you would be able to maintain your lifestyle. However, if the tax brackets only increase 1.5% because tax brackets are now tied to chained CPI, you will be paying more in taxes because your income and expenses will be rising faster than the rate the IRS is using. Because the tax rate is being adjusted for 2021 and will be adjusted in future years, this will compound over time, and has led to a slew of recent articles discussing a tax hike starting in 2021.

Congress passed the TCJA through budget reconciliation to avoid a filibuster, but that meant that the law could not increase the long-term budget deficit. As a result, Republicans decided to include a provision to have the individual tax cuts expire in 2025 while making the lower corporate tax rates and the chained CPI method of adjusting tax brackets permanent. The increased standard deduction and the larger child tax credit will also expire at this time. And because of the continued use of the chained CPI method, people will actually be paying higher taxes after the TCJA then they would if it had never been passed in the first place.


The change in federal taxes by year from the TCJA broken out by income distribution. Joint Committee on Taxation

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Over the past month, both Haiti and Afghanistan have been pummeled by tragic disasters that left devastation in their wake.

In Haiti, a 7.2 magnitude earthquake erupted, leading over to 2,189 deaths and counting. A few hours later, in Afghanistan, Kabul fell to the Taliban just after U.S. troops had pulled out after 20 years of war.

In many ways, these disasters are both chillingly connected to US interference. The United States invaded Haiti in 1915, ostensibly promising to restore order after a presidential assassination but really intending to preserve the route to the Panama Canal and to defend US creditors, among other reasons.

But the US forces soon realized that they were not able to control the country alone, and so formed an army of Haitian enlistees, powered by US air power and intended to quell Haitian insurrection against US controls. Then, in 1934, the US pulled out on its own, disappointed with how slow progress was going. Haiti's institutions were never really able to rebuild themselves, leaving them immensely vulnerable to natural disasters.

Something similar happened in Afghanistan, where the US sent troops and supported an insurgent Afghan army – only to pull out, abandoning the country they left in ruins, with many Afghans supporting the Taliban.

In both cases, defense contractors benefited by far the most from the conflict, making billions in profits while civilians faced fallout and devastation. While the conflicts and circumstances are extremely different and while the US is obviously not solely to blame for either crisis, it's hard not to see the US-based roots of these disasters.

Today, in Haiti and Afghanistan, civilians are facing unimaginable tragedy.

Here are charities offering support in Afghanistan:

1. The International Rescue Committee is looking to raise $10 million to deliver aid directly to Afghanistan

2. CARE is matching donations for an Afghanistan relief fund. They are providing food, shelter, and water to families in need; a donation of $89.50 covers 1 family's emergency needs for a month.

3. Women for Women International is matching donations up to 500,000 for Afghan women, who will be facing unimaginable horrors under Taliban control.


4. AfghanAid offers support for people living in remote regions of Afghanistan.

5. VitalVoices supports female leaders and changemakers and survivors of gender-based violence around the world.

Here are charities offering support in Haiti:

1. Partners in Health has been working with Haiti for a long time, and they work with the Department of Health rather than around them, which is extremely important in a charity.

2. Health Equity International helps run Saint Boniface Hospital, a hospital in Haiti close to the earthquake's epicenter.

3. SOIL is an organization based Haiti, "a local organization with a track record of supporting after natural disasters." They are distributing hygiene kits and provisions on the ground to hospitals and to victims of the earthquake.

4. Hope for Haiti has been working in emergency response in Haiti for three decades, and their team is comprised of people who live and work in Haiti. They focus on supporting children and people in need across Haiti.

via Tiffany & Co.

When the new Tiffany's campaign was unveiled, reactions were mixed.

Tiffany's, the iconic jewelry brand which does not (despite what some might be misled to believe) in fact serve breakfast, featured Jay Z, Beyoncé, and a rare Basquiat painting in their recent campaign.

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Road trips can be a lot of fun — but they can also drain your wallet quickly if you aren't careful.

From high gas costs and park admission fares to lodging and the price of eating out every night, the expenses can add up quickly. But at the same time, it's very possible to do road trips cheaply and efficiently. Without the headache of worrying about how much money you're leaking, you can enjoy the open road a whole lot more. Here's how to save money on a road trip.

1. Prepare Your Budget, Route, and Packing List in Advance

If you want to save money on a road trip, be sure you're ready to go. Try to count up all your expenses before you hit the road and create a budget. It's also a good idea to plan your route in advance so you don't end up taking unnecessary, gas-guzzling detours. And finally, be sure to pack in advance so you don't find yourself having to buy tons of things you forgot along the way.

2. Book Cheap Accommodations — Or Try Camping

All those motel rooms can add up surprisingly quick, but camping is often cheap or free, and it's a great way to get intimate with the place you're visiting. You can check the Bureau of Land Management's website for free campsites. Freecampsite.com also provides great information on If you don't have a tent or don't want to camp every night, try booking cheap Airbnbs or booking hotels in advance, making sure to compare prices.

Camping camping road tripConde Nast Traveler

If you're planning on sleeping in your car, a few tips: WalMart allows all-night parking, as do many 24-hour gyms. (Buying a membership to Planet Fitness or something like it also gives you a great place to stop, shower, and recharge while on the road).

3. Bring Food From Home

Don't go on a road trip expecting to subsist on fast food alone. You'll wind up feeling like shit, and it'll drain your pocketbook stunningly quickly. Instead, be sure to bring food from home. Consider buying a gas stove and a coffee pot for easy on-the-go meals, and make sure you bring substantial snacks to satiate midday or late night cravings so you can avoid getting those late night Mickey D's expeditions.

Try bringing your own cooler, filling it with easy stuff for breakfast and lunch — some bread and peanut butter and jelly will go a long way. Bring your own utensils, plates, and napkins, and avoid buying bottled water by packing some big water jugs and a reusable water bottle. Alternatively, try staying at hotels or Airbnbs with kitchens so you can cook there.

4. Avoid Tolls

Apps like Google Maps and Waze point out toll locations, so be sure to avoid those to save those pennies. (If it takes you too far off route, you might have to bite the bullet and drive across that expensive bridge).

You can also save on parking fees by using sites like Parkopedia.

Road Trip Road TripThe Orange Backpack


5. Save on Gas

Gas can get pricy incredibly fast, so be sure that you're stopping at cheap gas stations. Free apps like GasBuddy help you find the most affordable gas prices in the area. Also, try going the speed limit on the highways — anything faster will burn through your tank. Be sure that you don't wait till you arrive at touristy locations or big cities to fill up.

6. Get a National Park Pass

All those parks can get really expensive really fast. If you're planning on visiting three or more parks, it's a great idea to get an America the Beautiful National Parks Pass. For $80 you can get into every National Park for one year.