If tax brackets for taxable incomes stay the same overtime and everyones incomes increases due to inflation, I know the marginal tax rate would stay the same, but average marginal tax rate and total real tax collections would increase, right? I got that part. BUT what happens if the brackets are proportionately adjusted for inflation over time. What's the effect of inflation on the average marginal tax rate and total real tax collections?
EDIT: I had to edit the title coz nobody was paying attention!
EDIT: I had to edit the title coz nobody was paying attention!
