Post #2404611
2026-03-28 14:24 UTC
@rrustema020@mastodon.nl @peterbrown@mastodon.scot @MrAndrewD@aus.social @notjustbikes@social.notjustbikes.com We hit on a key point - fiscal policy is about a few different things:
1. Managing inflation - taxing people takes money out of the economy, Government spending puts money into the economy. Tax policy's first job is to prevent the economy from overheating.
2. Wealth redistribution - in the absence of intervention, wealth floats to the top. Progressive fiscal policy takes more from the wealthy and subsidizes the poor, for the good of society (1/2)
Replies (1)
-
@dneary@mastodon.ie 2026-03-28 14:30
@rrustema020@mastodon.nl @peterbrown@mastodon.scot @MrAndrewD@aus.social @notjustbikes@social.notjustbikes.com 3. Creation of incentives/expression of values - this is what you're alluding to. We tax tobacco and alcohol sales because as a society we see those as bad and want to discourage them. We subsidize behaviour that we want to encourage (spending on energy efficient homes or EVs over ICE vehicles).