The combination of inflation and Ford's plan to raise taxes had a mixed effect on the economy in the mid-1970s. On the one hand, inflation was a major problem during this period, with prices rising at an alarming rate and many people struggling to make ends meet. Ford's plan to raise taxes was intended to help combat inflation by reducing the federal budget deficit and slowing the growth of the money supply.
However, the tax hike had some negative consequences as well. Many businesses and consumers were already struggling to cope with high inflation, and the tax increase only made things worse. In addition, the tax hike had a negative impact on consumer confidence, which led to a decline in spending and a slowdown in economic growth.
Overall, the combination of inflation and Ford's plan to raise taxes had a mixed impact on the economy. While the tax hike was intended to help combat inflation, it ended up having some negative consequences as well. Ultimately, it would take several more years of economic turmoil before the country was able to fully recover from the challenges of the mid-1970s.