The correct way to measure the annual deficit is to compare the national debt at the beginning of the year with the debt at the end of the year. The difference is the real annual deficit. Increasing taxes does not close the deficit. Inflation is an indirect tax imposed by government. The definition of inflation is higher prices resulting from the supply of money expanding more rapidly than the supply of goods and serv- ices.
Government controls the supply of money.
Stated differently, a 1948 dollar is worth only 15.6 cents today. Nevertheless, tax levies have increased at a rate several times the rate of infla- tion. You be the judge.