The "Big Six" tax reform plan has generally earned well-deserved plaudits for being a framework that aims to restore some sanity to the nation’s tax code. A recent Politico poll shows that Americans are generally receiving tax reform positively.
However, a line that has continued to pop up in recent weeks has been that there is a “hidden tax increase” in the framework. Think tanks acrossthe spectrum have raised concerns about shifting the current Consumer Price Index (CPI) to a “chained CPI” for income tax brackets. Yet these kinds of labels misrepresent the context of such a shift, making them somewhat misleading.
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