Is Inflation a Tax? Some Republicans Think So.” Is it only republicans that think inflation is a tax?Explain your answer.

Tax Notes, a key practitioner publication for tax professions, recently ran an article that was headlined “Is Inflation a Tax? Some Republicans Think So.” Is it only republicans that think inflation is a tax?

First, what is inflation? Very broadly, inflation is when the general price level increases and things get more expensive. There are varying opinions on what causes inflation. Milton Friedman once famously said “Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”