Tariff and Spend
President Trump has proposed using the revenue from his increased tariffs to lower or even eliminate income taxes — with a priority on removing Americans making less than 200,000 dollars a year from the tax rolls. Exempting more Americans from income taxes — and lowering taxes on other Americans— is certainly a worthwhile endeavor. However, replacing income taxes with tariffs may have negative consequences for the very Americans President Trump wants to help.
Replacing with tariffs what the government raises from income taxes may require raising tariffs even higher than President Trump’s “liberation” tariffs. This would cause more price increases and encourage other governments to retaliate by raising their tariffs, further disrupting supply chains and leading to even higher prices and shortages. The negative impacts of tariffs could dwarf the benefits of lower, or even no, income taxes.
Consumers can try to avoid tariffs on goods. Massive avoidance of tariffs could lead to the imposing of higher tariffs or new taxes. The reason politicians must play the game of “offse
Article from LewRockwell
LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
