Editing Indexation (section)

==Tax rate==
The indexation of tax rate is to avoid an increase in effective and marginal tax rates due to inflation pushing taxpayers taxable income into higher tax brackets even though their pre tax purchasing power has not changed.  Tax codes of various countries can be very complicated.  As a result, certain types of taxes may be partially or entirely subject to deindexation even though the main tax rate structure is not.  This is the case in the US where the standard tax rate is indexed to inflation.  But, its parallel [[Alternative Minimum Tax]] (AMT) code is not.  As a result, a rising share of the taxpayers’ population is anticipated to become liable under the AMT which was originally implemented to tax only the very rich.(On January 2, 2013, President Barack Obama signed the American Taxpayer Relief Act of 2012, which indexes to inflation the income thresholds for being subject to the tax.[1])  In Canada, a recent reduction in tax rate was in part countered by a partial deindexation of certain credits (the credits were adjusted upward by the inflation rate – 3%).