Abstract
Point estimates of the effective individual income tax rates are shown for four real adjusted gross income levels from 1944 through 1972. Summary measures of liability progression are then calculated for each year, and the effects of past and prospective inflation is raising the level of tax rates and lowering the progressivity of the tax structure under given schedules are explored. It is found that the elasticity of the income tax rates with respect to inflation is at least 0.6 on average. This implies that taxes are raised by more than 16 per cent after one year of 10 per cent inflation.
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