Douglas Castro
ADC Wealth Management, LLC
30D Broadaway, Suite 200
Massapequa, NY 11758
douglas@adcwealth.com
www.adcwealth.com
The Fed continued on its steepest rate increase since the early 1980s. Political pushback against the Federal Reserve has been building as criticism surrounding the rate hikes has become a focal issue. October saw a weaker U.S. dollar helping to propel stocks higher as multi-national U.S. companies benefit due to overseas sales.
Late 2021 was the first time the self-employed workforce expanded to over 10 million people for several months since 2008. Quits per month also reached a historically high level during the Great Resignation, jumping from 2,000,000 people in April 2020 to over 4,500,000 people quitting their jobs each month in November 2021. Over 47.8 million people quit their jobs in 2021 alone, an astonishing amount. In addition, the pandemic ushered in an era of remote work.
In addition to these changes making it so individuals can earn more money and still be taxed at a lower rate by the federal government, current taxes are much lower than historical averages. The top income tax rate, currently at 37%, is 20% lower than the average top income tax since its introduction in 1913. The top income bracket tax rate reached as high as 94% in the 1940s and its 100-year average is about 57%.
These increases will all save taxpayers a significant amount of money that would previously go towards taxes. These changes all apply for 2023, and thus taxpayers will see them when filing taxes in early 2024.