bracket creep meaning

Noun: bracket creep

1. A movement into a higher tax bracket as taxable income increases

Derived forms: bracket creeps

Type of: income tax

Encyclopedia: Bracket creep

[Business]
noun [U] (especially AmE)

(Economics )

a situation in which the small pay increases that you receive because inflation has risen result in you paying higher amounts of tax ⇨ FISCAL DRAG, TAX BRACKET

[Finance]
The gradual movement into higher tax brackets when incomes increase as a result of inflation.

Examples

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1. Then the'70s saw inflation-induced bracket creep savage after-tax income.
2. The lack of indexing produces bracket creep.
3. The across the board tax system reduced marginal rates and further reduced bracket creep from inflation.
4. The primary delivery of this objection is a slippery slope argument rhetorically known as " bracket creep ".
5. At that time the problem was " bracket creep " : Inflation kept pushing taxpayers into ever higher tax brackets.