So, the question in this thread is whether raising taxes on the rich and big corps reduces inflation, right? This is what the Left always wants to do, raise taxes and spend more money. Generally, when you raise taxes you get less investment and less innovation, thus lower economic growth. But what about inflation? IMHO, it depends on where the money goes and how much money we're talking about.
The basic problem with inflation is that you have too much money circulating in the economy relative to the aggregate amount of goods and services you produce. IOW, demand has outstripped supply and the value of a dollar is reduced; what used to cost $1 now costs $1.50, or whatever but it's always higher. So - what happens when you raise taxes on the rich/big corps? Does demand go down? NO. Does the gov't get more productivity out of the increased revenue than they otherwise would? Does supply go up? NO. Although the studies are not all consistent, historical evidence suggests an undesirable, long-run effect from government spending: it crowds out private-sector spending and uses money in less productive ways because they are more interested in political gain vs economic growth. They'll tell you otherwise, but they're lying.
When you raise taxes on the rich and the big corps you're going to get less investing and less innovation and fewer startups and business expansion. Why? Because you are taxing those things more. Or rather those things do create more income that the rich guys and big corps have to pay more tax on, that's why they do it. So, if you raise income taxes, they'll pull more money out of the income producing assets and put more money into non-taxable assets than they otherwise would, i.e., unrealized gains in wealth that they don't pay taxes on until later.
This is a long way around the barn to get to the point, which is that when you raise taxes you are not decreasing the amount of money in circulation cuz the gov't is going to spend the extra money, BUT the amount of goods and services produced is less than it otherwise would be without the tax hikes. So, if you raise taxes you are not going to reduce inflation at all, you might even make it worse. But you will reduce economic growth, and that ain't good.
