> Lowering taxes for the wealthiest does not impact the basket of goods that generally composes the inflation index.
That depends on what they do with it. For example, in my country rent and house prices are a part of the CPI, and if wealthy people decide to invest their tax cut gains in real estate, that will raise those prices.
Of course, you can debate how large the effect of lower taxes/stimulus checks is on the current inflation event. Personally I believe that the current situation is mostly caused by supply-side problems, and that demand-side measures will have only a limited effect.
That depends on what they do with it. For example, in my country rent and house prices are a part of the CPI, and if wealthy people decide to invest their tax cut gains in real estate, that will raise those prices.
Of course, you can debate how large the effect of lower taxes/stimulus checks is on the current inflation event. Personally I believe that the current situation is mostly caused by supply-side problems, and that demand-side measures will have only a limited effect.