Each year the tax brackets are adjusted to reduce the effects of inflation.

Name: Each year the tax brackets are adjusted to reduce the effects of inflation.
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

This is because if tax brackets remained the same, inflation would cause individuals to move into higher tax brackets even if their real income remained the same. Adjusting the tax brackets for inflation helps to ensure that taxpayers are not unfairly burdened with higher taxes due to rising prices.

Each Year the Tax Brackets Are Adjusted to Reduce the Effects