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Lol assuming inflation is caused by an increased money supply; not the material food shortage we are seeing. Further, this type of taxation is a regressive tax

• JumpCrisscross 4y ago
  > assuming inflation is caused by an increased money supply; not the material food shortage we are seeing Doesn’t matter. Fiscal taxation (spending) reduces (increases) aggregate demand directly. No need for monetary transmission channels.
  • lettergram 4y ago
    Except this taxation is supposedly going directly to spending on regular road maintenance. Which injects the funds directly back into the economy. Money supply isn’t changing here. Even if it were, demand isn’t being reduced. They’re just forcing you to spend it on roads.
    • JumpCrisscross 4y ago
      > this taxation is supposedly going directly to spending on regular road maintenance Totally orthogonal. Spending is stimulative. Taxation is tightening. That the two are traditionally bundled is political convenience. We can rail against the spending bit as inflationary. My narrow point is that calling out tax increases vis-à-vis inflation is inchoate.
  • f0xJtpvHYTVQ88B 4y ago
    Taxation doesn't change the amount of spending. It only changes who is doing the spending.