Indexation
Adjusting tax thresholds with inflation so average tax rates don’t creep up over time.
Example:
Without indexation, bracket creep slowly taxes workers harder.
Visual idea: A tax bracket ladder rising alongside inflation.
Adjusting tax thresholds with inflation so average tax rates don’t creep up over time.
Example:
Without indexation, bracket creep slowly taxes workers harder.
Visual idea: A tax bracket ladder rising alongside inflation.