What Is the First to File Rule? The first to file rule can mean different things depending on the context. In the context of federal court proceedings, the first to file rule states that whoever is the first party to file a lawsuit is awarded their home courts for the location of the trial or legal
What Is the First World? “First world,” a term developed during the Cold War in the 1950s, originally referred to a country that was aligned with the United States and other Western nations in opposition to what was then the Soviet Union and its allies. Since the collapse of the Soviet Union in 1991, the
What is the First-Year Allowance The first-year allowance is a UK tax allowance permitting British corporations to deduct between 6% and 100% of the cost of qualifying capital expenditures made during the year the equipment was first purchased. This serves as an incentive for British companies to invest in emerging and eco-friendly products. Breaking Down First-Year Allowance
What Is a Fiscal Agent? A fiscal agent is an organization, such as a bank or trust company, that acts on behalf of another party performing various financial duties. A fiscal agent may assist in the redemption of bonds or coupons, handle tax issues, replace lost or damaged securities, and perform various other finance-related tasks. Key
What Is Fiscal Capacity? Fiscal capacity, in economics, is the ability of government, groups, institutions, etc. to generate revenue. The fiscal capacity of governments depends on a variety of factors including those that contribute to the tax base; the government’s ability to efficiently tax; compensating behavior among taxed individuals, markets, and asset prices; and access
What Is a Fiscal Cliff? The fiscal cliff refers to a combination of expiring tax cuts and across-the-board government spending cuts that create a looming imbalance in the federal budget and must be corrected to avert a crisis. The idea behind the fiscal cliff was that if the federal government allowed these two events to
What Is a Fiscal Deficit? A fiscal deficit is a shortfall in a government’s income compared with its spending. The government that has a fiscal deficit is spending beyond its means. A fiscal deficit is calculated as a percentage of gross domestic product (GDP), or simply as total dollars spent in excess of income. In
What Is Fiscal Drag? Fiscal drag is an economic term whereby inflation or income growth moves taxpayers into higher tax brackets. This in effect increases government tax revenue without actually increasing tax rates. The increase in taxes reduces aggregate demand and consumer spending from taxpayers as a larger share of their income now goes to
What Is Fiscal Imbalance? Fiscal imbalance occurs when a government’s future debt obligations are not in balance with its future income streams. There are two types of imbalances that can impact a government’s expenditures and revenue: vertical fiscal imbalance and horizontal fiscal imbalance. Obligations and income streams are measured at their respective present values and
What Is the Fiscal Multiplier? The fiscal multiplier measures the effect that increases in fiscal spending will have on a nation’s economic output, or gross domestic product (GDP). In general, economists define fiscal multipliers as the ratio of a change in output to a change in tax revenue or government spending. Fiscal multipliers are important
