Inflation leads to bracket creep,which forces taxpayers to pay a larger percentage of their income in taxes,when

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Bracket creep refers to the situation when inflation pushes taxpayers into higher tax brackets, even if their real incomes do not increase. As a result, taxpayers end up paying a larger percentage of their income in taxes, which reduces their purchasing power. This happens because income tax brackets are usually fixed, and their thresholds are not adjusted regularly for inflation. Therefore, as inflation increases, more taxpayers get pushed into higher tax brackets, leading to bracket creep. Choice A is the best answer because it accurately describes the main reason for bracket creep.

Inflation Leads to Bracket Creep,which Forces Taxpayers to Pay a Larger