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Taxing the wealthy does not shrink the money supply unless you destroy the taxed money (which as we all know, the government will never do). In fact, it's proba
by ceeplusplus 4y ago
Taxing the wealthy does not shrink the money supply unless you destroy the taxed money (which as we all know, the government will never do). In fact, it's probably inflationary, since most wealthy people have their money invested into assets and therefore that money is not being actively spent, but the government is going to immediately spend it.
- nl 4y agoIt's not inflationary since it just reduces a deficit budget position slightly.