Bracket creep would be more likely occur in which of the following?
A)a progressive income tax system
B)a regressive income tax system
C)a flat income tax system
D)none of the above

Question

Quizplus · Accepted Answer

Bracket creep occurs when inflation causes an individual's income to push them into a higher tax bracket, resulting in a higher tax burden. In a progressive income tax system where tax rates increase as income increases, inflation can cause more individuals to move to higher tax brackets, making bracket creep more likely to occur. In a regressive income tax system where tax rates decrease as income increases, bracket creep is less likely to occur. In a flat income tax system where everyone is taxed at the same rate, bracket creep is not a concern since there are no different tax brackets.

Bracket Creep Would Be More Likely Occur in Which of the Following