Meaning of bracket creep | Babel Free

Definitions

The move towards increased taxation when an inflation adjustment to a wage or salary pushes a taxpayer into a higher tax bracket (or, in a progressive taxation regime, further into a bracket).

uncountable

Equivalents

Examples

“The corporate tax is essentially a flat-rate tax; thus there is no bracket creep⟳.”

“Bracket creep⟳, however, was occurring only among individuals, not corporations. All other things being equal, this bracket creep⟳ increased the extent to which borrowing would be undertaken by individuals, not corporations.”

“2001, Frederick C. v N. Fourie, How to Think⟳ and Reason⟳ in Macroeconomics, 2nd edition, page 290, Bracket creep⟳ can be avoided by regularly adjusting tax brackets for inflation, so that the tax brackets remain⟳ unchanged in real terms.”

CEFR level