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No. The basic version goes lowering taxes = more money in pockets but same output = inflationary. It's not necessarily that simple but in any case you have it c
by htfu 4y ago
No. The basic version goes lowering taxes = more money in pockets but same output = inflationary.
It's not necessarily that simple but in any case you have it completely backwards.
- claytongulick 4y agoLet's apply the ole reductio absurdum and see how it shakes out. Bloat an already obese government by cranking taxes up to 100%, society collapses. Put the government on the fasting cure, starve the beast, and most folks end up with more in their pocket and happier. How about I add $100 tax to each apple sale? What happens to apple prices? I'd be forced to finally develop a taste for cherry pie. How much and who to tax have been arm wrestled over since humans figured out that houses are nicer than caves. Cities need both taxes and sewers to survive, but too much of either will stink enough to drive off anyone who can. Take a peek at That Which is Seen and That Which is Not Seen [1]. Bastiat had his head screwed on straight for a Frenchman, and had it figured out in 1850. [1] http://bastiat.org/en/twisatwins.html http://bastiat.org/en/twisatwins.html
- htfu 4y agoSure. Or starve an already cash-strapped government by lowering taxes to 0%, society collapses. What is your point exactly? Other notable things: America's historic tax rates (pre-Reagan), social democratic leaning countries. Higher happiness, somehow. Top marginal rate doesn't affect the vast majority of people, should go without saying. But you changed the subject. We were discussing what relative tax changes may or may not do to inflation, not your libertarian dreams.