Sharply rising inflation has already eroded Americans' purchasing power. Now it's poised to raise a lot of tax bills too.
In more than a dozen states where income tax brackets are not indexed to inflation—as they are at the federal level—the current run of price increases could tip taxpayers into higher brackets, where they will owe larger slices of their income to the government. That's because wages will likely continue to increase throughout this year to offset rising prices, while other forms of income, such as Social Security benefits, are obliged to increase in line with inflation.
