Thread by @scottsantens

Inflation is a regressive tax that impacts those with low incomes more than high incomes. However the net outcome can be made progressive, where those with low incomes see an increase in buying power and those with higher incomes see reduced buying power.
theatlantic.com/ideas/archive/…

I fully expect inflation hawks to soon start claiming the monthly CTC is part of the inflation story but if your income is $12k and you get $500/mo CTC, then an annual inflation rate of 3% would reduce buying power by $45/mo. That's $455/mo more.

It is $455/mo with 0% inflation.

What's also interesting about this is that any conservative crying about inflation as a result of the monthly CTC will be making the argument (whether they realize it or not) that taxes should be raised on *families* in order to reduce the invisible tax of inflation on the rich.

If a rich person paying an effective tax rate of 10% experiences 3% inflation, that means that billionaire earning $1 a year in salary sees a 3% reduction in the buying power of the $10 million a year they're spending.

Inflation eliminates $300k of that buying power like a tax.

Now imagine that billionaire is a parent getting $500/mo for two kids too, because of their annual taxable income of $1. With an annual inflation rate of 3%, that's like a sales tax of $294k on their $10 million in spending. Their buying power goes down more than the CTC helps.

So stop complaining about inflation and start demanding that those with lower and middle incomes get enough monthly basic income to nullify inflation so that only the wealthy see reduced buying power because of any inflation.

Also, focus on increasing supply vs reducing demand.