Tax Policy Center

inflation

Individual Taxes: TaxVox

What is the inflation adjustment for taxes in 2023?

Inflation last year reached its highest level in the United States since 1981. As a result, the IRS announced the largest inflation adjustment for individual...
February 17, 2023Robert McClelland
Individual Taxes: TaxVox

IRA and 401(k) Contribution Limits Are Increasing. That’s Great News If You Are Rich

In response to the recent burst of inflation, the IRS is raising contribution limits for the full range of retirement savings accounts. That’s great news...
November 4, 2022Howard Gleckman
Individual Taxes: TaxVox

What The IRS Inflation Adjustment Really Means

The Internal Revenue Service announced its inflation adjustment for tax year 2023: It will be a bit more than 7 percent, the largest increase in...
October 21, 2022Robert McClelland
Business Taxes: TaxVox

A Federal Gas Tax Holiday Is A Terrible Idea

President Biden is proposing a three-month federal gasoline tax holiday. He may want to appear to be doing something to address high inflation, which is both an economic concern...
June 22, 2022Howard Gleckman
Federal Budget and Economy: TaxVox

Should Congress Raise Taxes To Fight Inflation?

Should Congress Use Tax Hikes To Fight Inflation? In a Monday Wall Street Journal column (paywall), President Biden urged Congress to help fight inflation by...
June 2, 2022Howard Gleckman
Federal Budget and Economy: TaxVox

CBO: The Government’s Era Of (Nearly) Free Money Is Over, At Least for Now

The federal government may once again have an opportunity to learn a painful lesson about the price of increasing debt and rising interest rates in...
May 26, 2022Howard Gleckman
Federal Budget and Economy: TaxVox

Note To Governors: Cutting Taxes Will Make Inflation Worse, Not Better

Note To Governors: Cutting Taxes May Make Inflation Worse Even as Republican governors blast President Biden and congressional Democrats for both causing inflation and failing...
March 15, 2022Howard Gleckman
State and Local Issues: TaxVox

Five Reasons Why States Should Proceed with Caution Despite Soaring Revenues

Two years into the pandemic, states are flush with cash, a vastly different picture than the 20 percent revenue decline suffered by states in the...
February 8, 2022Lucy Dadayan
: TaxVox

How the Pandemic Affected the TCJA’s Shift to A Chained CPI Index

The 2017 Tax Cuts and Jobs Act (TCJA) changed the way parts of the tax code are indexed for inflation. Instead of using the standard...
February 4, 2022Robert McClelland
Federal Budget and Economy: TaxVox

The Short Run Growth and Inflation Effects of Build Back Better Are Likely to Be Modest

A key issue in the congressional debate over President Biden’s Build Back Better (BBB) plan is how it would affect the economy over the next...
November 17, 2021Benjamin R. Page