Inflation and the 2023 tax year Federal tax bracket
Posted By RichC on October 23, 2022
The Federal tax brackets are adjusted each year by the IRS based on inflation numbers in an attempt to stop “bracket creep.” This prices have soared as in September 2022 consumer prices were up 8.2% compared to 2021. It is likely most Americans have not seen that kind of wage increase which means their buying power is reduced and quality of life diminished. An interview with a politician commented that “if you’re living on the same income as last year, with inflation running at 8+%, it is as if you are working one month for free.”
According to an Axios article, the good news (cough, cough) is that …
Worth noting: The jump could have been higher if not for a tax overhaul signed by former President Trump in 2017, the New York Times reports.
- Republicans at the time tied the adjustments to the chained Consumer Price Index, which tends to rise at a slower pace than the standard CPI.
- In September, chained CPI grew 0.2 percentage points slower than the standard CPI compared to 2021.
Hm, I don’t hearing many taxpayers cheering with excitement? #sarcasm
Comments