No. of Recommendations: 3
Steve,
As the Supreme Court has just ruled (admittedly I haven't bothered to read the opinion or a summary of it, but this is what I've heard is the basic reasoning), tariffs are a tax.
According to progressives, taxes are GOOD.
More taxes means more income for the government.
Also, they are a form of consumption tax. That's a GOOD kind of tax, if any taxes are "good." Like a value added tax.
Taxes on income and production are not good because they stifle growth and productivity.
Taxes on consumption (again if any taxes are "good") are good because they re-direct non-productive consumption activity to lesser-taxed activities such as investment.
Asserting that somehow tariffs are "regressive" isn't really relevant even if true. FICA is regressive and it's by far the biggest tax that about 50% of the working class population has to pay. Further, it takes from younger workers to subsidize older retired folks who tend to be richer.
So please let's not talk about "regressive" O.K.?
Also, tariffs force choices. If I have an extra $1,000 or let's say $10,000 laying around, and I want to buy "stuff," I can only buy $8,500 of "stuff," the rest is tariff/taxes.
So maybe instead I will only spend $5,000 on stuff including the tariffs, and INVEST the other $5,000.00.
Which is better for the economy?
