answersLogoWhite

0

Inflation is too much money chasing too few goods. If the new revenue from raising taxes is used to pay down debt, raising taxes can help control inflation by reducing discretionary income.

User Avatar

Wiki User

13y ago

What else can I help you with?

Related Questions

Does raising taxes have a direct impact on increasing inflation?

Raising taxes can indirectly impact inflation by affecting consumer spending and business investment, which can in turn influence prices. However, the relationship between tax increases and inflation is complex and can be influenced by various factors.


The severe inflation of the 1970s was largely caused by?

lyndon johnson's efforts to maintain yhe vietnam war and great society programs without raising taxes


Why are state legislators hesitant to raise taxes?

Because it is unpopular. Raising taxes is a good way to undermine re-election.


Why vote for John McCain?

because he would be a good president without raising taxes!!!


Why doesn't raising taxes make the economy better?

because things get more expensive


Why were the colonists so against paying taxes to England?

because England kept raising taxes and putting taxes on new things and the colonists moved away from England to get away from high taxes


Why would a country in a state of war suffer high inflation rates?

Government raises taxes to pay for the war. People retaliate by raising their prices to keep making the same amount of money.


Savings, Taxes, and Inflation?

Savings, Taxes, and Inflation The value of your savings can be affected by both taxes and inflation. Use this calculator to determine how much your savings will be worth with this in mind. Click the "View Report" button to get more information and a year-by-year savings schedule.


Why did the tea of Boston got dumped?

because they were mad about the british raising the taxes. so they dumped the tea


Why did Jefferson think the colonies should not obey king George?

Because he was raising taxes and not giving them rights.


Why does government uses indexing to revise tax brackets so that workers do not pay higher taxes just because what?

Of inflation


Which segment of the government is responsible for raising taxes or reducing taxes?

The legislative branch