[dragonwriter]

> No, the states and the federal government can too, by destroying money (IE increasing taxes).

Destroying money (taxes, when fiscal policy is viewed through the lens of monetary effects) is counterinflationary. Creating money (spending) is inflationary. Broadly speaking.

[BuckRogers]

It seems that you're largely restating what the comment you replied to was saying. If not, please correct me because I may be missing some nuance that I shouldn't have. In that line of thought though, cutting taxes without cutting spending increases inflation. Because the borrowing of newly printed money doesn't stop. Without 1:1 cuts in spending it's problematic. That's what happened in 2017[0], a ~2.3 trillion dollar "charge" without increasing wages or jobs. As we see today. We were already at historically low tax rates while deficit spending, and then taxes were cut. I'm not a "supply side" guy so I'm not surprised that things didn't work out. Maybe someone will try to link growth in 10 years back to it. :)

I'm for low taxes of course. I don't know too many that aren't. But they have to make sense as well.

[0]https://www.thebalance.com/cost-of-trump-tax-cuts-4586645

[dragonwriter]

> It seems that you're largely restating what the comment you replied to was saying

The comment I responded to said government can cause inflation by destroying money by increasing taxes.

That's backwards, destroying money is deflationary.

[BuckRogers]

Oh my bad, I must’ve read the parent incorrectly. Rereading it now, I see my error. Yes I agree with you. It is a pretty simple concept. Any mechanism that reduces the amount of money in circulation has a deflationary effect.