Tag: inflation
While the system is generally indexed for inflation, taxation of Social Security benefits is not. The federal income tax is generally indexed for inflation. Most particularly, the income brackets to which the marginal tax rates apply are increased in line with the “Chained CPI-U.” While the chained CPI-U has risen somewhat less rapidly than t…
The brief’s key findings are: FY 2022 has been hard for state and local pension plans, with large investment losses and rising outlays due to inflation. The aggregate funded ratio fell from 78 percent to 74 percent, negating much of the gains from the previous year. The impact of rising inflation on pension finances, though,…
