fiscal drag

fiscal drag
fiscal drag ˌfiscal ˈdrag noun [uncountable] ECONOMICS
when rising incomes mean that the government receives increasing amounts of tax, as people move up into higher tax bracket S (= levels of income with a particular tax rate). Taxes have to be adjusted to take account of this, if it is not to have an effect on the economy as a whole:

• If we do not cut taxes, the normal process of fiscal drag means that the tax burden rises over time.

* * *

fiscal drag UK US noun [U]
ECONOMICS, TAX the situation in which people pay a larger part of their income in tax, because the government does not increase the levels at which people pay tax at the same rate as that at which inflation is increasing: »

The Budget shows the tax burden increasing as a result of fiscal drag.

Financial and business terms. 2012.

Look at other dictionaries:

  • Fiscal drag — refers to the process where tax thresholds are either not adjusted for inflation, or fail to keep pace with earnings growth, causing in either case an automatic rise in tax revenues.Example of nominal fiscal dragSuppose a person earns $20,000 per …   Wikipedia

  • Fiscal Drag — is an economics term referring to a situation where a government s net fiscal position (equal to its spending less any taxation) does not meet the net savings goals of the private economy. This can result in deflationary pressure attributed to… …   Investment dictionary

  • fiscal drag — /fiskalˈdrɛɡ, ingl. ˈfɪsk(J)ldr(g/ [loc. ingl., comp. di fiscal «fiscale» e drag «trascinamento»] loc. sost. m. inv. prelievo fiscale, drenaggio fiscale …   Sinonimi e Contrari. Terza edizione

  • fiscal drag — noun The means by which the inland revenue automatically benefits from any increase in earned income without any actual increase in taxation rates • • • Main Entry: ↑fiscal …   Useful english dictionary

  • Fiscal Drag —   [ fɪskəl dræg, englisch], Built in Flexibility …   Universal-Lexikon

  • fiscal drag — / fiskl dræg/, it. /fiskal drɛg/ locuz. ingl. (propr. draga fiscale ), usata in ital. come s.m. (econ., giorn.) [quota di prelievo fiscale operata in misura sempre maggiore sui redditi, come conseguenza del loro aumento causato dall inflazione]… …   Enciclopedia Italiana

  • fiscal drag — (pron. fiskl drèg ) Inglese, è egregiamente tradotto con drenaggio fiscale . Ma gli stessi ministri italiani parlano di modificare la curva delle aliquote tributarie per correggere gli effetti del fiscal drag . È il caso che si ha in tempi di… …   Dizionario dei Modi di Dire per ogni occasione

  • fiscal drag —  The time between when a government spending policy is approved and when it affects the economy.  ► “But like Mr. Bush before him, Mr. Clinton has locked in the fiscal drag of a tax increase. (Wall Street Journal, April 5, 1994, p. A18) …   American business jargon

  • fiscal drag — fi·scal drag loc.s.m.inv. ES ingl. {{wmetafile0}} TS econ. → drenaggio fiscale {{line}} {{/line}} DATA: 1980. ETIMO: comp. di fiscal fiscale e drag drenaggio …   Dizionario italiano

  • Fiscal Drag — fiskalische Bremse; Effekt progressiver Besteuerung, der das Anwachsen des Nationaleinkommens im Aufschwung bremst, weil die Steuerbelastung aufgrund ihrer Aufkommenselastizität von größer als Eins überproportional steigt (⇡ Built in… …   Lexikon der Economics

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.