This works if you live in a high tax state.
Respectfully, Supposn
Prices are intentionally inflated by goverent thru tax increases. Those on fixed incomes have to leave the state or file for government assistance. This is how blue states control voters. Raising the MW causes inflation. It's a never ending cycle.
But inflation reduces the burden of public debt which is why they really do it--it generates more tax revenue in terms of just less valuable dollars and therefore makes it easier to service past debt.
But inflation reduces the burden of public debt which is why they really do it--it generates more tax revenue in terms of just less valuable dollars
Federal taxes are indexed for inflation.
We weren't discussing federal income tax. We were discussing blue states.
California raises the minimum wage to create inflation to make it easier to pay down their debt?
Sounds complicated.
If a Californian makes twice as much then California collects twice as much income tax and twice as much sales tax which they use to pay off debt and spend even more money on silly shit. Otherwise they would get no new toys and would have to cut their budget to service their debt as other operating costs creep up. Otherwise they would be pricing their poor folks out of the poverty level for federal programs and reducing their cut of the federal pie.