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If current federal tax laws remain unchanged, will average federal tax rates increase or decrease over time?

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Per the Congressional Budget Office, "Most parameters of the tax code are not indexed for real income growth, and some are not indexed for inflation." Thus, if tax laws remain unchanged, "average federal tax rates would increase in the long run." This phenomenon is called "bracket creep," and laws that provide tax cuts sometimes only keep taxes in line with their historical levels instead of allowing them to balloon.




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