In 1985,President Reagan indexed taxes to the cost of living in order to __________.

Question

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President Reagan indexed taxes to the cost of living in order to keep inflation from impacting tax brackets. This means that as the cost of living increased, so did the income thresholds for each tax bracket. Without indexing, people could be pushed into higher tax brackets simply due to inflation, even if their real income hadn't increased.

In 1985,President Reagan Indexed Taxes to the Cost of Living