The Tax Bill's New Way Of Measuring Inflation Could Take A Toll On Taxpayers
The tax overhaul legislation uses an alternative measure of inflation that will show less upward pressure on prices. That means tax brackets will adjust upward less often, making many people pay more.
Among the big changes contained in the tax overhaul signed by President Trump last week is a little-remarked-upon provision changing the way inflation is calculated.
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 usedissued by the Labor Department each month.
