Rachel Pomerantz is a rising sophomore at the University of Pennsylvania.
Ben Franklin famously said, “In this world nothing can be said to be certain, except death and taxes.” While the existence of taxes is certainly a certainty, how much you will pay is anything but. Taxes are but one of the many areas that the issue of inflation impacts at both a federal and state level.
The federal government and some state governments adjust monetary amounts to compensate for inflation. As defined by the Bureau of Labor Statistics, inflation is “a process of continuously rising prices or equivalently falling value of money.”  For example, if the annual inflation rate is 5%, then $100 in one year is worth the same amount as $105 the next year. Since most countries formulate public policy to combat positive inflation, policymakers are thus concerned with combatting the decreasing value of money it causes.