Inflation is rising faster than inflation, and the average American household has paid more than $3,600 more in federal taxes since 2012, according to a new study from the Tax Policy Center.
The average cost of housing is up $1,100 since 2012.
Median wages are rising by less than 3 percent over the past five years.
“These increases are particularly noteworthy in light of the fact that the average annual wage has increased only 0.1 percent over that time,” the authors write.
The report comes on the heels of the Federal Reserve’s decision to increase interest rates in December.
It will be interesting to see how the Fed’s decision affects household spending and income.
“The Fed’s policy actions have had a significant impact on the average household,” the report says.
“For example, the Federal Government’s fiscal stimulus package boosted spending by $1.4 trillion during 2013 and is projected to boost household spending by another $1 trillion during the 2018-2021 period.”
Households that have been hit hardest by the Fed action are those in the middle and lower income brackets.
They typically make $51,500 or less a year.
The median income for households making $51-55,000 is $43,500, while households making between $55,001 and $65,000 earn $59,000.
For households making over $65.000, the median wage is $56,000, while the median annual household income is $58,000 per year.
Incomes for people making more than that amount of money are also up slightly, with the median household income of $84,000 rising $1 per year, or 9 percent.
The CPI index is calculated using an index of 100 and includes food and fuel costs.