fiscal drag

British  

noun

1. economics the process by which, during inflation, rising incomes draw people into higher tax brackets, so that their real incomes may fall; this acts as a restraint on the expansion of the economy

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Example Sentences

This is what is known as fiscal drag.

From BBC

This is what is known as fiscal drag - not a phrase you'll hear talked about much, but it is important.

From BBC

Despite most of the bands remaining static, more people will pay a higher rate of tax due to "fiscal drag".

From BBC

Despite most of the bands remaining static, more people would pay a higher rate of tax through a process known as fiscal drag.

From BBC

Frozen thresholds contribute towards what is known as "fiscal drag" and amount to big tax rises – where people can be hauled into paying a tax, or a higher rate of it, courtesy of inflation.

From BBC