Originally Posted by
Daytr
I had a bit of a radical thought yesterday.
We have a very blunt tool using interest rates to tame inflation / cool the economy, which only impacts those with debt I.e those starting out or those who can least afford the hit. Meanwhile those debt free are getting higher interest rates on their deposits and can carry on spending up large.
So what if we combined floating interest rates with floating tax rates on the higher income bracket?
Surely it would slow the economy more quickly & spread the burden more evenly.