90% inflation trap that resets no tax bracket

"An insightful article by Dr. Salman Khalid, Director of the Economic Growth and Forecasting (EGF) Lab at IBA Karachi, published in The Express Tribune, examining how inflation and stagnant tax thresholds have increased the burden on Pakistan’s salaried class.

The article explores the phenomenon of bracket creep, where inflation pushes taxpayers into higher tax brackets despite little or no real income growth. It highlights the implications for purchasing power, work incentives, and tax fairness, while advocating for reforms that better align tax policy with economic realities." 

https://tribune.com.pk/story/2610764/90-inflation-trap-that-resets-no-tax-bracket

A thought-provoking discussion featuring Dr. Salman Khalid, Director of the Economic Growth and Forecasting (EGF) Lab at IBA Karachi, in conversation with renowned journalist Munazza Siddiqui on the Narratives channel, on the growing tax burden facing Pakistan’s salaried class.

The discussion explores the concept of bracket creep and how inflation can silently push individuals into higher tax brackets despite little or no real increase in income. Dr. Khalid examines the impact of rising prices, taxation, and stagnant purchasing power on households and the broader economy, while also sharing insights on fiscal policy, IMF-related reforms, and Pakistan’s economic outlook. Through this conversation, the session sheds light on key economic challenges affecting Pakistan’s middle class.