Bracket CreepHere's why: For years, the tax code had a structural problem known as “bracket creep.” In effect, as people’s incomes rose, in part because of inflation, they’d move into higher tax brackets. Some other provisions, including the standard deduction, the personal exemption, the Earned Income Tax Credit and the Alternative Minimum Tax, are also indexed for inflation. More importantly, the outline would revise the way the tax code measures inflation. And that means people would pay higher income taxes than under current law. And unlike proposals to repeal, say, itemized deductions, people might not notice this hidden tax increase for years to come.

Source: Forbes October 03, 2017 18:45 UTC