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

A situation in which inflation pushes people into higher tax brackets, resulting in a higher tax liability, even though the purchasing power of their income has not increased. When inflation is high, the dollar amounts of people's incomes goes up, but because prices for products also go up this does not correlate to an increase in purchasing power. However, because tax brackets are listed by dollar amounts, it may mean that the government is entitled to a greater share of one's disposable income. To avoid bracket creep, a legislature may link a tax bracket to inflation or change tax brackets every few years.

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.
References in periodicals archive ?
In Eq 7, the instantaneous creep strain (first term) possibly results from changes in bond lengths and angles.
This article compares test results of 34 creep bending test series with different PU and EPI adhesive products with respect to different creep durations and influence of glue line thickness.
Extrapolating creep data to longer times can be risky, with the possibility of material failure (creep rupture) lurking just around the corner.
On the basis of the existing knowledge, it can be stated that it is possible to observe different values of shrinkage strains and creep strains within the same strength class of concrete based on concrete mixtures differing in only their w/c ratio.
According to the author's literature research, so far, the effect of the added RGO on the creep behavior of the bonded joints have not been investigated yet.
The following describes a simple experiment demonstrating how creep data can be generated and applied.
Preventing creep generally involves mechanically attaching the bearing to the housing, installing an O-ring, and thickening the outer ring.
Another aspect of the creep factor is not giving customers a tangible benefit in providing their information.
Composite Creep Model of Hardening Cement Paste Mixed with Expansive Additive.
The instantaneous elastic-plastic deformation of rockfill materials was modeled using the Duncan E-B model [18], and the time-dependent creep deformation was modeled using the power function creep curve models [8].