[Denvercoder9]

> Would anyone seriously argue that lowering taxes is inflationary?

Lowering taxes is inflationary. It's one of the reasons the financial markets have reacted so negatively to Britain's fiscal event.

> Would anyone seriously argue that we should fight inflation by _raising taxes_?

There's a difference between recognizing that raising taxes helps fight inflation, and wanting to use it for that. Raising taxes has other effects as well, that might (socially) outweigh the contribution in fighting inflation.

[hikingsimulator]

> Lowering tax is inflationary

It's not. At least not per se. Lowering taxes for the wealthiest does not impact the basket of goods that generally composes the inflation index.

Markets reacted badly because the British debt and currency, despite covid and brexit, are still risk havens and worth holding for hedging one's positions. were.

The Kwarteng budget upended this picture, the long term solvency and ability to deal with the future of the UK government. Financiers readjusted their models and positions accordingly.

[Denvercoder9]

> Lowering taxes for the wealthiest does not impact the basket of goods that generally composes the inflation index.

That depends on what they do with it. For example, in my country rent and house prices are a part of the CPI, and if wealthy people decide to invest their tax cut gains in real estate, that will raise those prices.

Of course, you can debate how large the effect of lower taxes/stimulus checks is on the current inflation event. Personally I believe that the current situation is mostly caused by supply-side problems, and that demand-side measures will have only a limited effect.