On Oct. 18, 2022, the IRS announced the annual inflation adjustments for the 2023 tax year. As a result, many key tax provisions including the income thresholds for the federal tax brackets will increase by roughly 7% to account for the sky-high inflationLinks to an external site. Americans have seen throughout 2022. This larger-than-usual adjustment could mean many folks may stay in a lower tax bracket; some may even see a smaller tax bill in 2024.

For this discussion, please identify both positive and negative implications that will arise as a consequence.