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

(Mostly) Good answers so far. Another problem is that everyone complains the government runs large deficits. Say they DID raise taxes. Now the government has money. Well here in the US the left would demand they spend that money on public services, the right would demand you cut taxes and give it back to taxpayers, both of put money back into circulation which is exactly what you’re trying NOT TO DO.