The Daily Valet. - 11/13/23, Monday
✔️ About Those Taxes ...
Monday, November 13th Edition
By Cory Ohlendorf, Valet. Editor
It's a very financially-minded newsletter today.
Presented by
Today’s Big Story
New Tax Brackets
The IRS has boosted the income thresholds for each bracket. What does that mean for you?
Who doesn't like talking about taxes? Oh, right. Everyone. But this is likely good news, for most. You see, the IRS just announced higher inflation adjustments for the 2024 tax year, potentially giving Americans a chance to increase their take-home pay next year. The agency makes inflation adjustments annually to tax brackets, the standard deduction and some other tax breaks.The changes are designed to protect taxpayers from the effects of inflation, said Alex Durante, an economist at The Tax Foundation. But the net effect of the changes often do not meaningfully alter a person's tax burden. The IRS makes these changes annually, using a formula based around the consumer price index to address inflation and prevent “bracket creep,” which happens when inflation pushes taxpayers into a higher bracket without any real increase in income or buying power. While this bump is lower than last year's historical 7% increase, it is still more significant than times in the past when inflation was lower than the current 3.7%.Put another way, “the inflation adjustment isn't putting extra money in people's pockets. It's just keeping them from facing higher taxes if their inflation-adjusted incomes (also known as real incomes) rise by 7%,” wrote Robert McClelland, a senior fellow at the Tax Policy Center, in a blog post. All said, the IRS is making changes to over 60 tax provisions for 2024, including a 5% increase to the standard deduction.Of course, not everybody pays the same amount of taxes. The IRS determines how much you'll pay each year using a graduated-rate income tax system. There are seven federal income tax rates as set by the 2017 Tax Cuts and Job Act and they're applied progressively—meaning the more you earn, the higher percentage of taxes you pay from your income. The rates currently are set at 10%, 12%, 22%, 24%, 32%, 35% and 37%. For 2024, the lowest rate of 10% will apply to individuals with taxable income up to $11,600. The top rate of 37% will apply to individuals making above $609,350 (and married couples filing jointly earning $731,200 or more). The new federal standard deduction next year will increase to $14,600, up from $13,850 this year. But remember, these aren't what you'll use to file your taxes in a few months. These are the numbers that will be relevant to the tax return most Americans will file in early 2025.
Meanwhile:
The Fed is terrified Americans could get used to high inflation. But some fear it may already be happening.
Crisis Heightens at Gaza’s Main Hospital
As the hospital goes ‘out of service’, new Evidence shows Hamas prepared for a ‘second phase’ of assaults aiming to provoke an Israeli war
Israeli Prime Minister Benjamin Netanyahu defended his military's assault on northern Gaza on Sunday as the United States “signaled its displeasure at hospitals coming under attack and international criticism mounted over the rising civilian death toll,” reports the New York Times. Israeli forces were “proceeding as quickly as we can but also as carefully as we can because we want to minimize civilian casualties and we want to minimize casualties on our side,” Netanyahu told NBC News.But as Israeli troops move deeper into Gaza City, hundreds of seriously ill and wounded patients and newborns, along with other displaced people, have been trapped inside Al-Shifa Hospital, the largest in the enclave. The Palestinian Health Ministry says the hospital has been “out of service” since Saturday morning. The challenges for Gaza's hospitals continue to mount: As fighting has intensified, ambulances have come under fire, power is going out, and dead bodies have piled up in an overwhelming surge of patients.Meanwhile, the Washington Post reports that new evidence gleaned since Oct. 7 shows Hamas militants prepared for a “second phase” of assaults amid hopes of provoking an Israeli war and beyond. The intel reveals an intention by Hamas planners to “strike a blow of historic proportions.” The findings also shed new light on the tactics and methods used by Hamas to deceive Israel's vaunted intelligence establishment and thwart initial efforts by the Israel Defense Forces to stop the attack.
FYI:
More than 100,000 people marched in Paris on Sunday to protest against rising antisemitism.
Partner
Huckberry has options for refined men and outdoor adventurers alike.
Is Threads Winning the War With X?
It all depends on who you ask
Threads launched, not with a whimper but with a bang. In just the first few days, Threads gained an unprecedented 100 million-plus users. But it could be argued that the initial excitement about the app has been short-lived and some have wondered if Threads was unraveling. For the American market, one well-respected analyst firm said Threads will continue to “rank second-to-last among social networks” through 2025.But there are signs of growing usefulness for all sorts of people. Recently, Casey Newton wrote in his Platformer newsletter that the conflict between Israel and Hamas also seems to have helped tip the scales in favor of Threads. For more than a decade, Newton noted, people flocked to Twitter (now X) whenever a global crisis struck, attracted by its mix of first-person testimony, verified journalists sharing factual reporting, and a broad range of commentary on whatever was happening. But that platform no longer exists, Newton argued; X may still offer first-person accountings of the news, but Elon Musk's approach to verification makes it impossible to tell what is reliable and what is not.The Verge thinks that Threads can easily catch up to X, especially since it's rolled out a Threads web app, along with several highly-requested features including a search feature, a following feed, and a way to share posts through Instagram DMs. But that isn't to say that Threads doesn't still have its issues. The Columbia Journalism Review pointed out a potential issue with Threads: the app currently blocks posts and searches for terms that it deems inappropriate, but that also includes useful news and crucial information. Of course, this is still early days ... stay tuned.
Dig Deeper:
Here's how in about five short months, a small team of engineers at Meta took Threads from an idea to the most successful app launch of all time
Fast Food Isn’t Cheap Anymore
Taco Bell may be one of the few outliers, but Cheap food always comes at a price
Have you noticed that when you grab fast food these days, those value meals don't exactly deliver on the promise of “value” like they once did. In fact, there have been times when the price of one of those meals has downright shocked me. And the data backs up that sentiment: Menu prices jumped significantly throughout the pandemic. As reported by CNET, prices for U.S. fast food chains shows that menu prices were up about 13% from 2021 to 2022. Wendy's and Chick-fil-A were both on the higher end of price increases, with a respective 35% and 15.6% increase over the previous year's prices.In 2023, the numbers only continued to climb; a report from the National Restaurant Association shows that menu prices in September rose by another 6% over the same period in 2022. Salon says this is both a good and a bad thing—cheap food always comes at a cost. “There's a lot that goes into how a meal is priced, including the cost of labor, the cost of ingredients and the cost of logistics and transportation … over the last several years, most of these factors have gotten more expensive.”But that can still be a bitter burger to swallow, so price-conscious fast food consumers continue to hunt for the best deals. There's still one place reliably serving up large meals under the $10 mark, though, and customers have taken notice. Leave it to Taco Bell to give the people what they want. CNN reports that Taco Bell is continuing to draw in the traffic thanks in large part to its consistently low menu prices.
Meanwhile:
If you want to skip the theater and eat your concessions at home, Cinemark will now deliver them right to your door.
In Other News
Complains about several airlines were up by 49%.
Have you heard about ...
Partner
Smart Gifts for the Rugged Gentleman
Huckberry has options for refined men and outdoor adventurers alike
The guys on your gift list are, no doubt, a challenge to buy for. But here's an insider secret: When you don't know what to get your brother, your dad or a buddy, look to retailers that look and feel like them. When you browse Huckberry's wide range of goods, we bet you see something that reminds you of the man you're shopping for. At once rugged and refined, the adventurous outfitter has everything from well-made apparel and accessories to home goods along with a myriad of EDC items (and a few grown-up toys) for the guy who lives an active, engaged and fearless life. This year's selection of tried-and-true gifts and gear combines an adventurous spirit with a cozy home life.
Bronze Super Sea Wolf dive watch, $1,895 by Huckberry x Zodiac
Wood and charcoal-fired portable pizza oven, $799 by Ooni
Marshmallow crossbow, $99 by MMX Vancouver
Lomo'Instant wide camera, $219 by Lomography
Heritage Trap unstructured blazer, $378 by Relwen
Flannel-lined waxed Hudson jacket, $348 by Flint and Tinder
Want More?:
Shopping
What We’re Buying
Indoor/outdoor slippers
You know the saying, “Everything is better in Japan”? Well, that certainly rings true when talking about slippers. Subu specializes in comfy nylon slippers ($69) that are soft enough for indoors and durable enough to be worn outdoors. Purpose-built for insulation, they're down filled and feature a raised inner fabric for softness and warmth. The textured rubber soles not only provide ample traction but also prevent static from accumulating—meaning no shocks in dry, indoor air. And because they're machine washable, if you do decide to wear them outside, you'll have your loungy house shoes back after just one spin cycle.
Want more?
The five stylish items you should be buying this week.
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