U.S. adjusts tax rules to curb skyrocketing inflation

The U.S. Internal Revenue Service (IRS) has announced it would adjust many tax rules in a bid to curb skyrocketing inflation.

The measures range from individual income tax brackets to the standard deduction, which are expected to provide some limited degree of savings for taxpayers in 2023.

This comes at a time when the inflation has hit a 40-year high, and taxpayers are in need of relief, as many struggle to pay for food and gasoline.

The IRS -- the U.S. government agency that collects taxes -- makes these kinds of adjustments on an annual basis, but record inflation has made the changes more significant.

Higher provision thresholds could give relief to some taxpayers in lower tax brackets, according to Tim Steffen, director of tax planning with a consultant agency, as reported by CBS News.

"A married couple earning 200,000 (U.S. dollars) in both 2022 and 2023 would save 900 U.S. dollars in taxes next year, because more of their income would be taxed at a lower rate," Steffen was quoted by the report as saying.

Brookings Institution Senior Fellow Barry Bosworth told Xinhua: "The system was already indexed for inflation and the new changes provide some minor refinements. The impact of the changes will be trivial, but good for taxpayers by reducing most people's taxes."