Fiscal Drag

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Fiscal Drag

Reduced activity in an economy as a result of a progressive tax system set up in such a way as to penalize extra earnings. For example, suppose a gross income more than $50,000 per year increases one's tax liability such that a person effectively earns less than he/she would have at $45,000 gross. A rational economic actor would therefore endeavor to lower his/her gross income. This in turn lowers spending and reduces the supply of money in an economy available to purchase goods and services. The diminished activity is called fiscal drag.

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No references found			Indeed they are right as secret fiscal drag, failing to raise thresholds, has quietly brought more people into higher tax brackets - but not the richest, whose earnings rose fastest; no new tax band for them. If a Martian taxman landed now, he'd never guess Labour was in power by guardian.co.uk / guardian.co.uk But the social and business costs of casino gambling can outweigh the fiscal drag on the state, according to Kelly P. Coalition calls state casinos a sucker's bet by Telegram & Gazette (Worcester, MA) Once upon a time, it was a tax which affected only the super-rich, but rising house prices coupled with the phenomenon of fiscal drag have pulled more and more of Middle England into its ambit and this is now reaching a critical mass. Cameron's tightrope by The Journal (Newcastle, England)			First Call First Call Date First Coupon First Cruzeiro First Dollar Coverage First East African Shilling First Fundamental Welfare Theorem First Home First Icelandic Krona First In, First Out First market first mortgage First Notice Day First Position Day first preferred stock First Section First Sudanese Pound first-generation space first-in, first-out First-pass regression First-Time Homebuyer first-year depreciation Fiscal agency agreement Fiscal Agency Services Fiscal Agent Fiscal Drag Fiscal Neutrality Fiscal Period Fiscal Policy Fiscal Quarter Fiscal stimulus fiscal year Fiscal Year-End Fiscalmente rilevante Fischer Black Fisco Fisher Effect Fisher's Separation Theorem Fishyback Fisk-Gould Scandal Fissazione del prezzo dell'oro Fit Fit Investment Fitch Investors Service Fitch Ratings Fitch Sheet Five Against Bond Spread Five Against Note Spread Five Cs of Credit Five Hundred Dollar Rule Five Percent Rule			Fiscal Affairs Office Fiscal agency agreement Fiscal Agency Service Fiscal agency services Fiscal Agent Fiscal Agent Fiscal Agent Organization Fiscal Agents Fiscal Analysis and Research Unit Fiscal and Financial Allocation and Monitoring Commission Fiscal and Statistical Management Act Fiscal Austerity and Urban Innovation Fiscal calendar Fiscal calendar Fiscal calendar Fiscal Cancel Fiscal committee Fiscal committee Fiscal committee Fiscal committee Fiscal Conservative in Name Only Fiscal Control and Internal Auditing Act Fiscal Crisis & Management Assistance Team Fiscal Deficit Fiscal Deficit Fiscal Deficit Fiscal Deficit Fiscal Director of the Marine Corps Fiscal discipline Fiscal discipline Fiscal Drag Fiscal Economics fiscal exchange Fiscal Guidance Fiscal Guidance Category Fiscal Guidance Memorandum Fiscal Impact Analysis Model Fiscal Impact Report Fiscal Intermediary Fiscal Intermediary Fiscal Intermediary Services Organization Fiscal Intermediary Standard System Fiscal Investment and Loan Programme Fiscal Invoice Processing System Fiscal issues Fiscal issues Fiscal issues Fiscal Issues, Policy and Education Finance Fiscal Management Fiscal Management and Accelerating Growth Fiscal Management Reform Program Fiscal Management Services Fiscal neutrality Fiscal Officer Fiscal Operation Report and Application to Participate fiscal period Fiscal Periods Fiscal policies Fiscal policies Fiscal policies

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