High Inflation Creates Tax Winners and Losers

Inflation is about to ripple through the tax code—and the nation’s mishmash of tax provisions means some people will be hurt and some won’t.

As inflation trends near a 13-year high, middle-income workers will benefit from automatic annual adjustments to tax provisions such as the standard deduction for income taxes. Some other provisions are frozen in time, stuck to specific dollar amounts from decades ago. Those provisions tend to pinch higher-income households.

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