▲ | nonameiguess 20 hours ago | |
Congress doesn't retroactively raise tax rates to make up the difference. If the government budget ends up in a deficit, which obviously it does, not just because of this but for many reasons, that is financed via debt. This isn't passed to the population as higher taxes, but as inflation, which affects everyone equally, including whoever got the tax credits in the first place. | ||
▲ | crazygringo 20 hours ago | parent | next [-] | |
First of all, you're wrong about how debt is financed. It's not via inflation, it's by taxes. Interest payments accounted for 13% of the federal budget last year. That's enormous. (Yes inflation reduces the value of debt over time, but debt carries interest which generally outweighs expected inflation.) Second, Congress absolutely adjusts tax rates as well. Not precisely one-to-one to match spending each year, but over the long term it's all got to add up. Every dollar the government spends today is paid with people's taxes either today or their taxes tomorrow. Third, the person who received the tax credits isn't being affected "equally". If 1% of people get the credit, but 100% of people pay for it, then the people who receive the credit end up hugely ahead in the end, while the other 99% lose out. So yes, for the 1% of people getting an electric vehicle tax credit, it is almost entirely paid for by the other 99% of people. | ||
▲ | PopAlongKid 20 hours ago | parent | prev [-] | |
Goverment debt is reduced by increased taxes and/or reduction in services just as much as it is by "inflation". Further, inflation doesn't affect the person who got a $7,500 individual tax reduction as much as someone who didn't. |