Why Congress needs to make taxing the rich part of the plan to address inflation

President Joe Biden recently penned an op-ed for the Wall Street Journal that outlines his plan to fight record-high inflation in America.

Given how incredibly rare it is for a president to do this, Biden’s actions reflect the extraordinary level of pain that workers all over the country are currently experiencing at the grocery store and gas pump, as well as the sense of urgency that’s felt around addressing this issue.

In recent weeks, lawmakers and economists have proposed a variety of policy solutions that they argue could stop or slow the rise in consumer prices. However, one of the best paths forward to save the country from the inflation crisis is arguably taxing the rich.

There are many contributing factors to inflation, but we are in this mess largely because aggregate demand–the total amount of money that consumers can use to pay for stuff– has outstripped aggregate supply as the economy rebounds from the pandemic. Backlogs in global supply chains and increased production costs have fueled price hikes, forcing millions of American families to pay more for almost everything.

https://fortune.com/2022/07/08/congress-taxing-rich-part-biden-plan-inflation-food-gas-prices-politics-economy-morris-pearl/