One of the mysteries of the English language finally explained.
The deflationary effect of a progressive taxation system on a country's economy. As wages rise, a higher proportion of income is paid in tax.
- ‘It has raised taxes so that an extra $1.5 billion will be paid this year just as a result of people moving into higher income tax brackets through fiscal drag.’
- ‘If every Budget has a theme, this year's is likely to be the extra amount of money the Treasury makes by leaving thresholds unchanged as prices and salaries rise - the so-called fiscal drag.’
- ‘As many salaries are rising faster than this, more people will enter the top tax bracket - fiscal drag in operation and a classic stealth tax.’
- ‘What will happen to the $1.4 billion in additional taxes that New Zealanders will pay in the 3 years because of fiscal drag?’
- ‘My feeling is that he will do it after the election, not by any direct tax increase, but through fiscal drag.’
Top tips for CV writingRead more
In this article we explore how to impress employers with a spot-on CV.