fiscal drag


Also found in: Thesaurus, Financial, Wikipedia.
Related to fiscal drag: Contractionary fiscal policy

fiscal drag

n
(Economics) economics the process by which, during inflation, rising incomes draw people into higher tax brackets, so that their real incomes may fall; this acts as a restraint on the expansion of the economy
Mentioned in ?
References in periodicals archive ?
Paul Johnson, director of the IFS, also warned of the pernicious effects of fiscal drag, where tax thresholds swallow earners for and the have-yachts.
That's it." The former Foreign Secretary signalled his plans in his regular Daily Telegraph column, writing: "We should be raising thresholds of income tax - so that we help the huge numbers that have been captured in the higher rate by fiscal drag." The Welsh Government did not wish to comment.
And by the end of the year, the fiscal stimulus from the Republican tax cuts will become a fiscal drag, possibly weakening growth.
The government has also increased natural gas prices by up to 143 percent to recover Rs 94 billion from consumers, in effect slashing consumer subsidies that were a fiscal drag on the government's budget.
By 2020, the stimulus will run out, and a modest fiscal drag will pull growth from 3 per cent to slightly below 2 per cent.
It is pertinent to mention that the government had last week increased natural gas prices by up to 143 per cent to recover Rs94 billion from consumers, in effect slashing consumer subsidies that were a fiscal drag on the government's budget.
ISLAMABAD -- The government on Monday increased natural gas prices by up to 143% to recover Rs94 billion from consumers, in effect slashing consumer subsidies that were a fiscal drag on the government's budget.
THREE UP Britt Assombalonga A record price tag can weigh heavy on a striker's shoulders if they don't score from the off - but there is no sign of any fiscal drag when Britt Assombalonga zips around the box.
The Philippine economy likely grew at a slower 6.6 percent year-on-year in the third quarter due to a temporary fiscal drag inherent in the transition to a new administration, an economist from Citigroup said.