There’s a sneaky way taxes are creeping up. But that might be OK
The article discusses the concept of bracket creep, where rising incomes push individuals into higher tax brackets without real gains in purchasing power. It highlights the political implications of this phenomenon, particularly how politicians may promise tax cuts that merely offset the effects of bracket creep. The author reflects on the idea of adjusting tax brackets for inflation and considers the complexities involved in such a proposal.
- ▪Bracket creep occurs when income rises with inflation, leading to higher tax brackets.
- ▪Higher taxes without real income growth can feel unfair to taxpayers.
- ▪Adjusting tax brackets for inflation could be a sensible solution to bracket creep.
Opening excerpt (first ~120 words) tap to expand
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Sydney Morning Herald.