President Biden’s multitrillion-dollar Build Back Better bill may have been beaten back, but its economy-killing tax increases could still pass.
Senator Joe Manchin (D–West Virginia), who played the key role in killing Biden’s spending extravaganza, is supporting higher taxes on businesses and capital gains. His rationale: More taxes will help fight inflation. Huh?
This episode of What’s Ahead explains why higher taxes have never conquered inflation. They do the opposite by not only raising costs (taxes are an expense) but also stifling growth. That lack of growth puts political pressure on government to spend more to help out a distressed populace. To get the money, politicians turn to printing it.
And we know where that leads.
This article was originally published by Forbes.com. Read the original article here.