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The Fed doesn’t control taxes, Biden has stated he won’t raise taxes on people making less than $400k, and the GOP has indicated that raising corporate income t
by jdavis703 5y ago
The Fed doesn’t control taxes, Biden has stated he won’t raise taxes on people making less than $400k, and the GOP has indicated that raising corporate income taxes are a no-go. Realistically what other options are there?
- ethbr0 5y agoOstensible the Fed is supposed to be an independent inflationary guard. (Yes, dual remit, but fair as a blanket statement) They could raise interest rates to break inflation, even at the cost of economic pain and forcing government to rebalance its books. Nobody was happy with Volcker, but once inflation gets rolling, no one believes you're serious until you take a tire iron to the economy's kneecap. And tell them (loudly) that you'll be back tomorrow for the other one. Or, you could take less pain now and avoid the worst future version.
- tastyfreeze 5y agoThe federal budget is higher than tax revenue. It has been this way for decades with few exceptions. If taxes dont cover the budget then the budget should be cut to fit revenue. But, that isnt what has been happening. The budget grows every year and the govenment borrows more money to cover it instead of cutting the budget or raising taxes. We are running the government on maxed out credit. But dont worry, congress will just increase the credit limit so we can borrrow more. The real solutions are political suicide. So, we will get the most shitty option of borrowing and printing more money.