system
Given the following post, respond as if you're commenting on Reddit:
human
Why cant we raise taxes to lower inflation ?

Government spending can lead to inflation by raising demand over economic potential. Can't taxes do the opposite?
gpt
The short answer is that we can. I’m not sure where OP is from but we are effectively doing this in the United States by not extending pandemic-related aid. Expansions of the child tax credit, child care tax credit, and earned income tax credit ended at midnight on New Year’s Day. Health insurance subsidies also expired. 

Raising taxes even more could reduce spending demand and slow price growth, as you say. Some taxes, such as consumption taxes and income taxes on low earners, impact short-term demand more than other taxes do. 

Falling demand means people make less stuff (in other words, output falls) and some workers lose their jobs, hours, and raises. Policymakers may choose not to raise taxes because they think the cost isn’t worth the benefit. Other less-strictly-economic reasons would be if tax increases were politically unpopular, or if policy changes are hard to execute in a system with many veto points, such as the United States.’