contingency tax

American  

noun

1. any new tax that would be necessary in case of a shortfall in revenues.

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Example Sentences

When the White House was preparing its budget message early last year, Feldstein and Stockman helped persuade the President, over objections from the supply-siders, to propose a contingency tax designed to boost revenues in 1985 if the deficits were still too high.

From Time Magazine Archive

One idea is to reintroduce the "contingency tax," which the President put into the 1984 budget but never formally proposed.

From Time Magazine Archive

Another plan is to propose a consumption tax, such as the value-added tax, in place of the contingency tax.

From Time Magazine Archive

He said there was no point in drafting such a bill, since the Administration is no longer pushing its plan to propose contingency tax measures that would go into effect in late 1985 if needed to reduce the burgeoning deficit.

From Time Magazine Archive

Even so, dropping the contingency tax will increase the projected 1986 deficit from $154.6 billion to $196.2 billion.

From Time Magazine Archive