August CPI Usually Means We Know What Tax Law Will Be Next Year, But Not This Year

The Tax Foundation has released a new report projecting 2011 tax parameters given BLS’ release of the August CPI this morning. Unfortunately, due to the uncertain state of tax policy, we are not able to know for certain what the parameters will be in 2011. However, the Tax Foundation has outlined what the major parameters would be under three scenarios: (1) Full expiration, (2) Republican plan as introduced this week in the Senate, which is essentially full extension, and (3) congressional Democrats plan (PAYGO) as interpreted by JCT.

Check out the new Fiscal Fact here.

Also, the Tax Foundation has updated its MyTaxBurden.org calculator to reflect the new inflation adjustments, as well as the new Republican proposal.