More Inflation, More Taxes

To the Editor:

It should be noted that the recent increases in tax revenues being generated within Fayette County are not related to increased sales, but to increased prices. Prices are up due to inflation and thus there is a corresponding increase in taxes collected.

Some would say that the inflation rate is decreasing and some costs are not increasing anymore. but it should be noted that they are not decreasing as that would be deflation.

Once inflation increases costs, those new costs are here to stay. The only way costs go back down is deflation and possibly supply and demand..

So when it is reported that 7.5% more tax dollars were generated then last July it should be noted that it was directly related to inflation, not necessarily increased spending activity.