Chained CPI means higher income taxes for middle class

Is anyone still keeping track of broken Obama promises? If they are, they might want to include his vow only to raise taxes on the "rich" and not the "middle class." Americans for Tax Reform report: The White House has confirmed that President Obama's forthcoming budget contains an income tax increase on middle class Americans. During a Friday, April 5 White House press briefing, spokesman Jay Carney replied "I'm not disputing that" when asked if a particular Obama budget proposal would raise income taxes on the middle class. The proposal in question is known as "Chained CPI." The term is a Beltway euphemism for measuring inflation at a different, slower pace.  Many tax and budget items are indexed to inflation, so slowing inflation's measured rate of growth has both spending cut and tax increase implications. On the tax side, all income tax brackets are subject to inflation.  Slowing down the inflation rate slows down the annual rate of growth in all...(Read Full Post)