A bill to amend the Internal Revenue Code of 1954 by requiring automatic cost-of-living adjustments in the income tax rates and the amount of the standard deduction.

Amends the Internal Revenue Code to direct the Secretary of Labor to report to the Secretary of the Treasury the average rate of increases in prices which occurred during the four previous quarters ending on September 30. Requires the Secretary of the Treasury to increase the dollar amounts in each tax bracket for the following year by the percentage increase in the price levels as reported.

Directs the Council on Wage and Price Stability to study the impact of indexing individual income tax brackets according to the rate of inflation and to report to Congress and the President with appropriate recommendations.

Provides that this Act shall apply to taxable years 1979 through 1981.