Education, Living

What it means for you if Congress raises Taxes to lower Inflation

Stay informed.

words by: Natasha Marsh
Jun 24, 2022

Are you an adult who would rather not pay attention to the daunting news? Firstly, you are not alone. With mass shootings, racism, mortality, hunger, and wars, I understand wanting to stay clear of it and protect your peace. However, staying informed is something journalists pride ourselves on, and I am here to bring you the cliff-note bleak-free version of what’s going on in the world, and how it will impact you.


First up, inflation. If you live in a city that does not rely on public transit, you might be infuriated with sky-high gas prices. Or maybe you are someone who travels for work, pleasure or leisure, and airline tickets are no where near the pricing you are used to. All this, friends, is credited to inflation.


Inflation is the decline of purchasing power when the goods and service demands increase. When inflation is high, it is a good sign the country or government of a country has poorly managed money. Which is why it is understandable that people in high positions are worried about the current inflation state.


Similar to much of the country, President Biden appears to be worried about the growing inflation in America and is doing his best to come up with solutions and plans. Just the other day, the President urged Congress to raise taxes on the rich to fight inflation. He stated that the money would be used to reduce the deficit, ultimately slowing down the demand for goods and services.


The issue people are having are how quickly this would impact inflation, if at all. Some argue that Congress would need to do it today in order for it to have an effect and figure out a way to sustain that. They fear that raising taxes today to lower them in the near future would make no sense. Others worry that it might fit the 2022 mold, but might not work in 2023, when new things aside from inflation could become priority.


Democrats by nature feel some type of way on raising taxes, especially for the middle to lower class, so their vote is against this. Assuming our government is mindful with the new revenue, I believe raising taxes for the 1% could help slow the growth of our federal debt and bring inflation down. Think about it, raising taxes on the less fortunate could somewhat help inflation, but ultimately put strain on those already struggling.


To help you stay afloat during inflation (as much as possible), here’s how to budget in your late 20s.