If this President wanted to bring down inflation, the LAST thing he should do is call for higher taxes.
Biden’s inflation crisis was NOT caused by taxes being too low. No legitimate economist, and no rational political observer honestly believes that.
Instead, Biden’s inflation crisis must be attacked on two separate fronts: supply-side and demand-side.
Let’s start with the demand side first. Think of this from the consumer standpoint, and what people spend money on.
We have an overly active economy, in large part, because of excessive government stimulus. You cannot pump trillions of additional dollars into the economy and not have an inflationary backfire. This is why those people who – even today – are calling for additional federal stimulus are DEAD WRONG. That is the last thing we need.
Meanwhile, the Federal Reserve needs to continue to carefully raise interest rates to help curb some of that spending. Nobody likes to talk about raising interest rates for a time, but unfortunately that’s part of the solution here.
Now let’s jump over to the supply side of things. Think of “supply side” from the business standpoint – the good & services they produce.
When we are battling inflation, government ought to get out of the way! Reduce regulations. Reduce taxes and keep them low. Stop meddling in their affairs. Do whatever we can to help businesses keep their costs low.
Solving inflation is a supply-side and a demand-side equation. You cannot address one part of the equation and ignore the other without making the problem worse. Someone in this administration ought to know that.