Bracket creep occurs when taxpayers move into higher tax brackets due to inflationary increases in their nominal income without a real increase in their purchasing power. This phenomenon increases government revenue without any changes in tax rates.
Income tax schedules refer to detailed tables that list the tax rates or tax brackets applicable to various ranges of income levels. These schedules are used to determine the amount of tax payable by individuals and corporations.
The marginal rate of tax represents the amount of extra tax that a taxpayer incurs if they earn one additional unit of currency over their current income. This rate typically rises as incomes increase under a progressive tax regime.
