View source for Act to Provide a Cost-of-Living Adjustment for Taxpayers

{{Infobox ALEC Bills
|bill_title          = Act to Provide a Cost-of-Living Adjustment for Taxpayers 
|date_introduced     = December 3, 2021
|date_reviewed       = 
|date_finalized      = 
|date_amended        =	
|date_accessed       = 
|type                = Model Policy
|status              = Draft
|task_forces         = Tax and Fiscal Policy
|keywords            = 
|notes               =
}}

<h1>Act to Provide a Cost-of-Living Adjustment for Taxpayers</h1>
SECTION 1. [insert state] code, concerning the standard income tax deduction, is amended as follows:

(A) [insert state] shall increase annually the standard deduction provided by the cost-of-living adjustment for the current calendar year, rounding the amount to the nearest ten dollars ($10).

(i) For purposes of this section, the cost-of-living adjustment for a calendar year is the percentage, if any, by which the Consumer Price Index for the current calendar year exceeds the Consumer Price Index for the preceding calendar year.

(ii) If the Consumer Price Index for the current calendar year does not exceed the Consumer Price Index for the preceding calendar year, the standard deduction shall not be adjusted under this subsection for that year.

SECTION 2. Definitions.

The Consumer Price Index for a calendar year is the average of the Consumer Price Index as of the close of the twelve-month period ending on August 31 of that calendar year.
“Consumer Price Index” means the most recent Consumer Price Index for all Urban Consumer published by the United States Department of Labor.
SECTION 3. Effective Date.

Section 1 of this act is effective for tax years beginning on or after [DATE].