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.

Question

Quizplus · Accepted Answer

Bracket creep refers to the increase in an individual's tax liability due to inflation pushing their income into a higher tax bracket. As inflation increases, income levels rise, and taxpayers move into higher tax brackets, ultimately paying more in taxes even if their real income has not changed.

The Movement of Taxpayers into Higher Tax Brackets as Nominal