2022 is shaping up to be a year of supply shortages on just about everything except for taxes. This may prove especially frustrating for property owners in the Northeast as they see new property tax bills come in.
Supply Shortages May Last Through 2022
Business experts and farmers are warning that supply chain shortages may last well into 2022. Some have hoped for an easing in this area by summer. Yet, a recent reverting to lockdown policies and tougher restrictions blamed on COVID are expected to only make supply issues much worse. There seems no logical reason to expect shortage issues to ease. Especially when there is so much motivation and incentive to keep up the appearance and fear of shortages, even if it is solved.
While you may have been pleasantly surprised to find more favorite holiday foods on the shelves in December than expected, you have probably run into supply issues elsewhere.
Perhaps you clicked on gifts to buy online, only to discover they were out of stock when you tried to check out. Or after paying were notified back orders may be delayed by months. Not a problem if you plan to celebrate this Christmas in March 2022.
Higher Inflation Is Coming
We seem to be running out of words for how fast real inflation has been rising. Of course, if you work in government or you are a bank executive who just got a $40M Christmas bonus, you probably won’t even notice if you are now paying $4 for what was a $1 item last year. However, for the average household, that means they could be paying $400 a week for what used to be $100 worth of groceries.
Multiply that across all household expenses. Hopefully your employer has been giving you at least a 50% raise each year. Along with letting you work from home. If not, the math just isn’t going to add up.
It’s not just food either. It’s insurance, gas, and vehicles. In fact, you might find it takes three months or longer to get your vehicle fixed these days. Or you may have to buy a third car, and park the first two, because the parts aren’t available, or are just ridiculously expensive.
No Shortage Of Taxes
The one thing that you can count on there not being a shortage of is taxes.
Don’t worry, you will get plenty of tax bills in 2022. You’ll get hit with new types of taxes, find staple tax breaks have been taken away from you, and that all of your tax rates may have gone up.
At this rate, you may find that Tax Freedom Day is extended well into the fall. Meaning you may work 7, 8 or 9 months of the year, just to pay taxes.
In fact, things have been growing so fast that governments in countries like Australia have vowed to continue taking measures to bring down their housing markets as they just can’t afford to have so many people priced out of housing.
Of course, we shouldn’t count on that in NY. At least not as an intentional policy. Our local governments are far too heavily reliant on property tax revenues. Though, even if property values do float down, they can always raise tax rates to try and make up for it.
Smart Money Moves For 2022
Sadly, we can probably expect more supply shortages throughout the next 6 to 12 months. We probably won’t run out of food. Though everything will continue to become more expensive. Including your taxes.
With this in mind, it may be wise to avoid blowing through any perceived surplus of money on overpriced goods. Save, be overprepared, and make reducing your taxes a top priority.