Wealth tax decreases money supply in the economy

In contrast, Biden’s proposal to tax wealthy individuals can help decrease the money supply in the economy without harming virtually anyone. America’s millionaires and billionaires are doing and have made out like bandits over the course of the pandemic. They can absolutely afford to have their wealth grow a little less than it normally would because of higher taxes. If that happens, they will want for nothing–that is, of course, if they even notice it at all. Tackling inflation doesn’t just involve lowering demand: It also involves helping supply meet the moment and keep pace with demand by boosting the economy’s productive capacity. If Biden and the Democrats play their cards right, the revenue raised from tax hikes on the rich could help fund other parts of Biden’s plan. For example, investing in clean energy, fixing the supply chain, and improving our infrastructure.