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bracket creep

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Bracket creep
The gradual movement into higher tax brackets when incomes increase as a result of inflation.
bracket creep
The movement of a taxpayer into higher tax brackets as his or her taxable income increases over time. Bracket creep occurs because of the progressive nature of the federal income tax structure, that is, extra income is taxed at higher and higher rates. As a result of bracket creep, more and more individuals seek tax-advantaged investments. Bracket creep was reduced significantly by 1986 tax reform, which reduced the number of tax brackets. Several additional brackets were added in the early 1990s.


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? Mentioned in ? References in periodicals archive
 
Bracket creep has been allowed to distort the tax system for too long, and it has caused more injustice than any other single factor.
Now is the time for tax reform by National Observer - Australia and World Affairs
The use of multiple beneficiaries in such a fact pattern works against bunching of income and bracket creep.
IRS rulings clarify IRA distribution rules by Whitney, E. Kenneth / The Tax Adviser
Such inflation-induced bracket creep was eliminated in 1981, when income-tax brackets were indexed for inflation.
Tax Reform by Friedman, Milton / Independent Review
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