bracket creep


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bracket creep

n.
A shift of personal income into a tax bracket with a higher tax rate as a result of inflation.

brack′et creep`


n.
the movement of a wage earner into a higher federal income-tax bracket as a result of wage increases intended to help offset inflation.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.bracket creep - a movement into a higher tax bracket as taxable income increases
income tax - a personal tax levied on annual income
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References in periodicals archive ?
Unlike National, who are set to tinker with tax bracket thresholds, ACT will tomorrow announce a plan to cut real tax rates and permanently end bracket creep.
The culprit behind the whopping tax bill is bracket creep, the result of inflation which would hike wages but at the same time elevates them to higher tax brackets.
In the 1980s, the narrative was the end of stagflation and middle-class tax bracket creep.
One was the issue of bracket creep, whereby people start to pay higher rate, 40%, tax too soon.
A CDU proposal to cure bracket creep in income taxes, where inflating wages push workers into high tax brackets, would ultimately cost Berlin and regional governments 19bn euros over four years.
Bracket creep occurs, over time, as people are pushed into higher tax brackets by inflation or higher incomes or both.