Tax brackets are also inflation-adjusted, so shouldn't that cancel out?

Most of the relevant numbers in the American tax code are inflation adjusted, but not all of them. The biggest ones for people on this website are probably the value of the Child Tax Credit and the thresholds at which the Net Investment Income Tax/Additional Medicare Tax kick in.

	▲	asdff an hour ago \| parent [-]
		Don't forget prop 13 in california, probably many beneficiaries of that policy on this forum.

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nothercastle 2 hours ago | parent | prev [-]

No it pushes you into a higher tax bracket earlier so also acts as a tax increase

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kennywinker 2 hours ago | parent [-]

I think the point is the tax brackets are supposed to be inflation-adjusted. So all the brackets go up 4.2% too. Idk if the implementation details make this actually work out 1:1 but that’s the idea.

	▲	madcaptenor an hour ago \| parent [-]
		That's what I was thinking.