Letter: Is increasing the prime rate effective?

The Fed has been trying to reduce inflation by increasing the prime rate. This makes loans more expensive and consumers paying for it. No wonder inflation is still high.

I have a suggestion that promises to keep the economy strong, put more money in the Treasury, reduce income disparity, and help those who suffer most from inflation: a flat tax of 20% on personal income. It comes with a $40,000 deduction, so a couple, each of whom make $40,000/year, would pay zero taxes. By basically doing away with tax filing, this could put the IRS out of business.

What’s not to like? Well, until supply chain problems are worked out, inflation will likely hover around 9%, but that’s a lot better than the Fed leading us into financial disaster.

Walter Mann

Marana

Disclaimer: As submitted to the Arizona Daily Star.