Taxes are component of inflation, particularly consumption taxes. As prices go up, so does the amount of tax being charged on them. By your logic, we should tax our way out of inflation by doubling the GST.
If your only goal is to curb inflation, then yes. That would likely have some effect. It would also reduce the deficit significantly.
But, at least you now agree with me…. a decrease in taxes leads to inflationary pressures. Glad you’re not confused any longer.
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