From the WSJ: The Era of Big Taxes Is Upon Us – WSJ
The tax collections go up, not so much because they raise the tax rates but because of inflation pushing everyone into higher tax brackets. Governments love inflation – they increase tax collections without the political fallout of voting for a tax hike. In effect, inflation is a double tax hit – one it is a tax on everyone as your cash becomes worth less, and two, the increase in taxes paid by pushing you into a higher tax bracket. Again, governments love inflation.
In the U.S. the political talk of who will raise taxes or not, is hot air. Republican’s won’t raise taxes, but will use inflation to do that by stealth, and the Democrats will raise taxes – but also benefit from inflation, apparently (this is the above linked story).
The general direction is increasingly state-run economies, large social benefit programs, and even socialism and rule by technocracy.
