Why do govts raise interest rates to slow the economy instead of tax rises?

Question

With interest rate rises, the people in the most debt suffer the most. With tax rises, the highest paid suffer the most, and the govt has extra revenue to help the ones struggling the most. This is never considered by any govt. Why not?

In: 1129

Answer 1

Because it’s much simpler and effective. Imagine the red tape of rising taxes from the moment inflation starts to hit and up to the point where taxes even begin to have an effect. It’s much quicker to raise the interest rates. Plus no single government in turn would be willing to raise taxes for everyone in a swipe, that’d be politically impossible or at the very least extremely controversial and unpopular.