The movement of taxpayers into higher tax brackets as nominal incomes grow is
A)Bracket leap.
B)Bracket hike.
C)Bracket creep.
D)Inflation hike.

Name: The movement of taxpayers into higher tax brackets as nominal incomes grow is A)Bracket leap. B)Bracket hike. C)Bracket creep. D)Inflation hike.
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Question

Quizplus · Accepted Answer

Bracket creep occurs when inflation pushes nominal incomes into higher tax brackets, resulting in individuals paying higher taxes even when their real purchasing power remains the same.

The Movement of Taxpayers into Higher Tax Brackets as Nominal