This, he suggested, “is an important change for the future, to banish the bandit of bracket creep”. Bracket creep is where despite doing the same job, a pay rise takes your income into a higher marginal tax bracket. Paying a higher marginal tax rate because you get a higher paying job is also not bracket creep – it is progressive taxation. The purpose of Morrison’s flat tax policy is not to rid us of bracket creep, but to reduce income tax – and to reduce it most for high income earners. It is a policy which, the Grattan Institute has found, will make our tax system much less progressive.

Source: The Guardian June 29, 2019 22:00 UTC