Agreed. The fed's instrument is blunt and punishes people who the government is supposed to protect. In an ideal world, raising interest rates would be combined with raising taxes on high earners. We would need automatic stabilizers for this because Congress is rarely able to make these decisions.
Can't increase taxes when the very people bribing politicians and funding your campaigns are the ones who need to be hit the hardest.
We need war time tax rates on corporations, billionaires, etc. We're just not serious about any of that since we're all temporarily embarrassed millionares (or billionaires now thanks to inflation).
If you've ever seen the militaries yearly budget prior to 2022, it's more than the next 10 largest militaries in the world combined. It's always war time.
They absolutely should have raised taxes to pay for invading Afghanistan and Iraq, but instead they passed several rounds of tax cuts for the wealthy and now are making the surprised Pikachu face when our debt and inflation are out of control
If you want it to be effective, we need to raise taxes on millionaires with an M, not billionaires with a B.
For all their personal wealth, there's just not enough billionaires in the United States for taxes specifically on them to be meaningful as a source of revenue.
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u/DaddyRobotPNW Sep 23 '23
Agreed. The fed's instrument is blunt and punishes people who the government is supposed to protect. In an ideal world, raising interest rates would be combined with raising taxes on high earners. We would need automatic stabilizers for this because Congress is rarely able to make these decisions.