Taxation's affect on inflation?

Taxation doesn't have an effect as long as the level is constant. It is increases or decreases in taxation that affect inflation.

Nope, 100% correct!

 

I was wrong on this - CPI does include sales tax.

Also, the key that I was missing with income tax was Purchasing Power.

I have more on it in a post at my blog

 

I’m not good at this stuff…but I would think that if the taxes increased, the cost of producing the goods increase, thus the price of the goods would increase, therefore inflation occurs. But I be turrible with da monies.

 

As long as the fed keep printing money prices will go up. Taxes or not.