1) Fiscal policy 2) Private economy spending gap
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https://www.crosswordclues.com/clue/fiscal-drag
Fiscal drag happens when the government`s net fiscal position (spending minus taxation) fails to cover the net savings desires of the private economy, also called the private economy`s spending gap (earnings minus spending and private investment). The resulting lack of aggregate demand leads to deflationary pressure, or drag, on the economy, ess.....
Found on
http://en.wikipedia.org/wiki/Fiscal_drag
When people's money income rises, dragging them into higher tax brackets. Fiscal drag is therefore referring to the effect inflation has on average tax rates. If tax allowances are not increased in line with inflation, and people's incomes increase with inflation then they will be moved up into higher tax bands and so their tax bill will go up. How...
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http://www.encyclo.co.uk/local/20140
A situation in which wages rise because of inflation but income tax thresholds are not increased, which can push people into higher tax brackets and therefore makes them pay an increased proportion of their wages in tax
Found on
http://www.encyclo.co.uk/local/22643
Fiscal drag is a restraint on the expansion of an economy as a consequence of government taxation policy. In a progressive tax system, a rise in inflation will cause wage earners to pay a higher proportion of their income in tax, even though their real wages are unchanged; this is nominal fiscal drag. Real fiscal drag occurs when all taxpayers pay ...
Found on
http://www.probertencyclopaedia.com/browse/JF.HTM
No exact match found.
