redskins44

Just to add to cpk’s post on the 1st point:
Let’s say you make $100k a year and pay $30k in taxes. 1 year later, you make the same salary but inflation goes up 50%. You will still pay the same in amount in taxes, regardless of what happens to the price level. What you can do, however, is take the nominal level of earnings and deflate it by a CPI index or something similar.