INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Tax rates,standard deductions,and personal exemptions are now tied to the Consumer Price Index to prevent "bracket creep."

Question

Quizplus · Accepted Answer

This statement is true. The government adjusts tax rates, standard deductions, and personal exemptions every year based on the Consumer Price Index to account for inflation and to prevent taxpayers from moving into higher tax brackets due to inflationary increases in their income.

INSTRUCTIONS: Choose the Word or Phrase in [ ] Which