For some time, and even before the last notable inflationary periods in the late 1970s and ’80s, the macroeconomic link between inflation and taxation and how they affect other has been well-documented. Then, the economic research narrative explored how inflation influenced direct and indirect taxation, as well as the subsequent fiscal and tax policy landscape for some after It would be instructive to dust of these sources and compare them to the present, even if what we find today looks a lot different.
Tax executives should be concerned with the rising inflation rates in light of local, national, and international economic conditions, chart their forecasts accordingly, and model the increasing rates of inflation from both the cost and tax-push perspectives.