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

Taxes tend to be used to discourage certain kinds of commerce (e.g., cigarettes or alcohol) and in some places are local rather than national. Banks touch many kinds of commerce. Interest rates are also more easily adjustable (though some tax hikes and cuts are also temporary). The stated intent of taxes tends to be to fund the government.