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What is fiscal boost?

Updated: 12/18/2022
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11y ago

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Fiscal boost means that as incomes fall the impact for the better off is 'softened' as they pay proportionately lower taxes, and retain more post-tax income.

Without welfare benefits, falling incomes will create more unemployment and poverty.

However, because the unemployed and poor receive benefits, and spend more than they would have without such benefits, the downturn in the economy is also 'moderated'

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