Bracket Creep: 3 Ways to Beat it and Keep More of Your Income
It can be very odd to get a salary raise and the gains of the raise are swallowed by a change in your tax bracket. You’re not alone, though, and the fact that a phrase – “Bracket Creep” – exists for it is perhaps consolation. Creating smaller tax brackets and adjusting taxes for inflation are some of them measures the government has taken to combat the effects of bracket creep, but unfortunately, many hard-working citizens are still affected. Because it is not an outright tax increase or other more “malevolent” forms of income reduction, many people are unaware of how much damage bracket creep can do to their incomes. Here’s an illustration of how it works: