IRS lowers tax rates, raises standard deductions for 2023, hoping to offset inflation – By A.L. Lee (UPI) / Oct 19, 2022
Oct. 19 (UPI) — The IRS has announced plans to adjust household tax rates for inflation in 2023, meaning millions of U.S. workers will take home more money next year.
The decision will increase standard deductions, while changing the rate of tax at certain levels of income as surging costs continue to inflict pain across every sector of the U.S. economy, hitting the pocketbooks of regular Americans especially hard.
Inflation is at more than 8% year over year. The Bureau of Labor Statistics released data last week showing rents up 7.2%, while electricity costs jumped 15% and groceries surged 13% during the same time. Health insurance costs have also gone up about 30%.
The Biden administration sees the tax modification as a way to offset rising food and energy prices — the worst the country has seen since the 1980s.
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