The dampening effect on aggregate demand that occurs when an expanding economy creates additional tax revenues, especially under a progressive income tax. Thus an example of an automatic stabilizer.
Related information about fiscal drag:
- Fiscal drag - Wikipedia, the free encyclopedia
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 ...
- Fiscal Drag Definition | Investopedia
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 ...
- fiscal drag - definition of fiscal drag by the Free Online Dictionary ...
(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 ...
- What is fiscal drag? definition and meaning
Definition of fiscal drag: Automatic restraint applied to a fast expanding economy under a progressive tax system. As incomes rise, individuals are pushed into ...
- Fiscal Drag from the State and Local Sector? - Liberty Street ...
Jun 27, 2012 ... With July just around the corner, most cities and states are preparing for the start of a new fiscal year.
- Fiscal Drag | Economics Help
Fiscal drag is a concept where inflation and earnings growth may push more tax payers into higher tax brackets. Therefore fiscal drag has the effect of raising ...
- Fiscal drag | Business Pundit
Fiscal drag takes place when the government's fiscal position is incompatible with the position of the private sector in terms of savings. During times of.
- US Fiscal Drag is World's Problem—Cliff or No Cliff - CNBC
Sep 18, 2012 ... Austerity has already hit home in the U.S., and is putting global growth prospects in jeopardy.