The increase in income tax payable brought about when an inflation-linked rise in income causes a person to move into a higher tax bracket (and hence to be assessed at a higher rate).
Origin
1970s; earliest use found in The Los Angeles Times. From tax + -flation, after stagflation.
Definition of taxflation in US English:
taxflation
nountaksˈfleɪʃn
US
The increase in income tax payable brought about when an inflation-linked rise in income causes a person to move into a higher tax bracket (and hence to be assessed at a higher rate).
Origin
1970s; earliest use found in The Los Angeles Times. From tax + -flation, after stagflation.