The undesirable effects of bracket creep can be eliminated by indexing marginal tax rates.
If incomes rise due to inflation,this will move some earners into a higher tax bracket unless tax rates are indexed to the price level.

Question

Quizplus · Accepted Answer

Bracket creep occurs when inflation pushes taxpayers into higher tax brackets without any real increase in their purchasing power or ability to pay taxes. Indexing marginal tax rates to inflation helps avoid this problem by adjusting tax brackets and standard deductions to keep up with the rising cost of living. This ensures that taxpayers are not penalized for simply keeping pace with inflation.

The Undesirable Effects of Bracket Creep Can Be Eliminated by Indexing