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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.
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Bracket creep has been allowed to distort the tax system for too long, and it has caused more injustice than any other single factor. The use of multiple beneficiaries in such a fact pattern works against bunching of income and bracket creep. Such inflation-induced bracket creep was eliminated in 1981, when income-tax brackets were indexed for inflation. |
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