Whether inflation is, or is not, the work of the devil is an issue on which I would rather not make a pronouncement; however, it is the theme of this book that inflation respects appearances while destroying reality. Inflation distorts tax systems and, in the process, affects the level of taxation and its incidence among taxpayers. But these distortions are often not obvious and, at times, are so subtle that not only unsophisticated observers but even highly sophisticated ones may be deceived into concluding that nothing has changed in reality. This book deals with these distortions, with respect to income taxes, and with what can be done, or has been done in various countries, to deal with them. As the subject is of considerable interest to policymakers around the world, I have preferred to emphasize the practical, rather than the purely theoretical, side of the problems. This, however, does not imply that this book will be of no interest to academic economists or to students of taxation. The problems are simply too important and complex to be left just to policymakers. This book includes thirteen chapters ranging from fairly theoretical to eminently practical ones. In all cases, the perspective is an international one, although because of greater availability of data for the United States, some issues are illustrated with examples for that country.