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Definition of

inflation tax

  • 1.

    government gain from inflation the decrease in buying power imposed by inflation on holders of currency and fixed-return assets, to the government's gain as it inflates the money supply

  • 2.

    tax on firms that give large pay raises an income policy that taxes companies that grant pay raises above a specific level

inflation tax - Related Articles
  • Steering Between Deflation and Inflation—A Troubled Road for Developed Economies


    The most obvious way of addressing the deficits would be for governments to “pass the parcel” back to the private sector through either rapid tax rises or big cuts in public spending, or both. The downside is that with taxes you are taking money out of the consumer’s pocket at the very time when you are hoping to see more spending to drive more growth, and with public sector cuts you are deflating the economy or, at the very least, not driving growth
    By Neil Williams

  • The Netherlands

    QFINANCE Country Profiles

    Growth was flat in the second and third quarters of 2008, and the economy is likely to have contracted in the fourth quarter. Private consumption provided only limited support in 2008—increasing inflation and rises in taxes and social premiums undermined disposable income. The recession

  • The LIFO Conundrum: Convergence of US GAAP with IFRS and Its Implications on US Company Competitiveness

    Best Practice

    1970s. During this period of high inflation in the United States, many companies adopted LIFO to lower their taxable earnings, and thereby, lower their then-current tax payments. Under current IRS tax regulations, a company that uses LIFO for tax reporting must also use it for financial reporting
    By William C. White IV

  • Slovenia

    QFINANCE Country Profiles

    Slovenia has pursued conservative fiscal and monetary policies in recent years in order to attain membership of the Eurozone, which it achieved in 2007. In the same year, the government embarked on an ambitious tax-reform program, which will lower revenues over a few years. The reforms included


Definitions of ’inflation tax’ and meaning of ’inflation tax’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’inflation tax’ and other financial terms with our online QFINANCE Financial Dictionary.

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