fiscal drag

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

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

But the policy amounts to a tax rise because of a process called "fiscal drag", which sees more people "dragged" into paying higher rates of tax as wages rises.

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