bracket creep

bracket creep
Increased taxation arising from wage and salary increases pushing taxpayers into higher tax brackets, or further into such brackets, in a progressive taxation system. The wage rises here are those from keeping pace with inflation or similar (not increased skills or better jobs) so a worker merely doing the same thing for the same notional purchasing power is taxed at a higher rate.
Syn: fiscal drag

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  • bracket creep — ☆ bracket creep n. Informal an advance into a higher income tax bracket resulting from an increase in nominal income: the higher taxes, when combined with the effects of inflation, may produce a decline in real income …   English World dictionary

  • bracket creep — The gradual movement into higher tax brackets when incomes increase as a result of inflation. Bloomberg Financial Dictionary * * * bracket creep ˈbracket ˌcreep noun [uncountable] when people earn more money, move to a higher tax bracket, and pay …   Financial and business terms

  • bracket creep — /ˈbrækət krip/ (say brakuht kreep) noun the gradual shift, as a result of inflation, of an income subject to a progressive income tax, from one tax bracket to another where more tax is paid despite the real level of the income (its purchasing… …  

  • bracket creep —  The tendency of inflation to push people into higher tax brackets.  ► “There was a huge but unlegislated hike in effective marginal tax rates in 1970– 1980. This was because of bracket creep the collision of inflation with a steeply progressive… …   American business jargon

  • bracket-creep — brackˈet creep noun An inflationary phenomenon whereby a salary rise makes a taxpayer less well off by pushing him or her into a higher tax bracket • • • Main Entry: ↑bracket …   Useful english dictionary

  • bracket creep — brack′et creep n. bus the movement of a wage earner into a higher federal income tax bracket as a result of wage increases intended to help offset inflation …   From formal English to slang

  • bracket creep — noun Date: 1978 movement into a higher tax bracket as a result of income rises intended to offset the effects of inflation …   New Collegiate Dictionary

  • bracket creep — the gradual movement of a wage earner into a higher federal income tax bracket as a result of wage increases intended to help offset inflation. * * * …   Universalium

  • bracket creep — noun a movement into a higher tax bracket as taxable income increases • Hypernyms: ↑income tax …   Useful english dictionary

  • Bracket Creep — A situation where inflation pushes income into higher tax brackets. The result is an increase in income taxes but no increase in real purchasing power. This is a problem during periods of high inflation as income tax codes typically take a longer …   Investment dictionary

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