Wilma Rudolph was given a cost of living raise and a merit raise at work this year.Her federal income taxes will be paid at 25% instead of 15%.Wilma has experienced

Question

Quizplus · Accepted Answer

Bracket creep occurs when a taxpayer moves into a higher tax bracket due to an increase in income, but without a corresponding increase in deductions or exemptions. In this scenario, Wilma received a raise that resulted in her being taxed at a higher rate, indicating bracket creep. The other options do not apply to this scenario.

Wilma Rudolph Was Given a Cost of Living Raise and a Merit