HSTEd
Veteran Member
- Joined
- 14 Jul 2011
- Messages
- 18,083
Because this is a budget that clearly isn't particularly worried about inflation.How does that change the point that adding another reflationary policy in the form of an increase in fuel duty would cause a knock-on effect of a further increase to the price of goods and services?
I don't follow the logic that an inflationary policy of increase fuel duty would be somehow less undesirable because other inflationary policies also exist. This is clearely a logical fallacy.
If it was worried about inflation it wouldn't have done a huge pile of other inflationary things.
The inflationary impact of fuel duty is also mitigated by the fact that tax rises are inherently deflationary.
The state increasing effective taxation on goods reduces the effective amount of purchasing power chasing said goods because it is diverted to the state instead.