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?
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Already covered: Central banks (the US Federal Reserve or in your case the Bank of England) are independent organizations that have the duty to control interest rates and inflation, but have no control over taxes, which are in the remit of Congress / Parliament.
New bit: More importantly, inflation is a case of *too much money* in circulation relative to the goods and services available. Central banks can solve this by raising their rates, which makes it more expensive to bring new money into circulation.
But raising taxes, doesn’t solve inflation: if you tax the rich and spend it on the poor, it doesn’t change the overall money supply. You’ve just redistributed it. Now, if Congress/Parliament raised taxes and *didn’t* spend the money, just set it all on fire or something, that *would* reduce inflation, but it would not be very popular!
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