December 27, 2017

IT'S A DEFLATIONARY EPOCH:

The Tax Law's New Way Of Measuring Inflation Could Take A Toll On Taxpayers (Jim Zarroli, 12/27/17, NPR)

A little-remarked-upon provision changing the way inflation is calculated is among the big changes contained in the tax overhaul signed by President Trump last week.

The new method, using the so-called "chained" consumer price index to determine when to adjust tax brackets and eligibility for deductions, is expected to push more Americans into higher tax brackets more quickly. In the past, the tax code used the traditional CPI measure issued by the Labor Department each month.

By switching to this new method, the government will bring an additional $134 billion into federal coffers over the next decade, according to the Joint Committee on Taxation.

Posted by at December 27, 2017 1:58 PM

  

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