"Bracket Creep" happens when
A) tax liabilities are based on real income and there is a negative inflation rate.
B) tax liabilities are based on real income and there is a positive inflation rate.
C) tax liabilities are based on nominal income and there is a negative inflation rate.
D) tax liabilities are based on nominal income and there is a positive inflation rate.
E) too many peculiar people make their way into the highest tax bracket.

Question

Quizplus · Accepted Answer

Bracket creep occurs when individuals are pushed into higher income tax brackets or have their income taxed at higher rates due to increases in nominal income, without a real increase in purchasing power, often because of inflation.

"Bracket Creep" Happens When