Fiscal drag: Difference between revisions
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imported>Doug Williamson (Create the page. Source: FT lexicon http://lexicon.ft.com/Term?term=fiscal-drag) |
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Fiscal drag helps to slow consumer spending and corporate activity, and thus acts as a counterbalance to unrestrained growth. | Fiscal drag helps to slow consumer spending and corporate activity, and thus acts as a counterbalance to unrestrained growth. | ||
Fiscal drag is increased when tax thresholds are left unchanged - rather than being increased with inflation. | |||
Such a policy is a way that some governments increase taxes in a relatively stealthy manner. | |||
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* [[Fiscal policy]] | * [[Fiscal policy]] | ||
* [[Fiscal risk]] | * [[Fiscal risk]] | ||
* [[Fiscal rule]] | |||
* [[Stealth tax]] | |||
* [[Supply side policy]] | * [[Supply side policy]] | ||
* [[Threshold]] | |||
[[Category:The_business_context]] | |||
Latest revision as of 18:42, 27 February 2025
Fiscal drag is the tendency of the proportion of taxation to rise when an economy is growing.
Fiscal drag helps to slow consumer spending and corporate activity, and thus acts as a counterbalance to unrestrained growth.
Fiscal drag is increased when tax thresholds are left unchanged - rather than being increased with inflation.
Such a policy is a way that some governments increase taxes in a relatively stealthy manner.
