Economic and Political Insights

Economic and Political Insights

Personal Finance & Investing

Tax creep from lack of indexation of Social Security benefits included in AGI

David Bernstein's avatar
David Bernstein
Aug 15, 2025
∙ Paid

Abstract: The tax code does not link the portion of Social Security included in AGI to inflation. This feature of the tax code leads to tax creep for retirees who do not or cannot change their retirement distribution rules. This post measures this tax creep and considers the feasibility of increasing Roth distributions to counter tax creep.

Introduction:…

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