The consumer price index is used to index income tax brackets.

Name: The consumer price index is used to index income tax brackets.
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Question

Quizplus · Accepted Answer

The consumer price index (CPI) is used to adjust income tax brackets, deductions, and credits to account for inflation. This ensures that taxpayers are not pushed into higher tax brackets due to inflation alone, and that their purchasing power is maintained. Therefore, the statement is true.

The Consumer Price Index Is Used to Index Income Tax