Inflation is Not a Hidden Tax Its a Very Real TaxWe’ve all heard the saying that inflation is a hidden tax. But depending on which state you live in, it should simply be called a tax – because that’s what it is. If you live in a state that fails to adjust its tax brackets (or the standard deductions or personal exemptions) because of inflation, then you end up paying more in taxes. It’s appropriately called “Bracket Creep.” , Simply defined: Bracket Creep occurs when more of your income is in a higher tax bracket because of inflation rather than higher real earnings. Inflation is not a hidden tax
