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I think a lot of people who talk about how increased tariffs by Trump amount to a tax on consumers (true) neglect to mention the fact that he plans on simultaneously cutting income taxes. When you tax something more you tend to get less of it and when you tax something less you tend to get more of it. Therefore shifting the tax base from income taxes to towards more consumption seems prudent as people will be incentivized to work more and generate more income (due to lower income tax) while at the same time being incentivized to spend/consume less. Higher income + lower spending equals higher savings rate = more capital investment to grow the economy. This is supposed to be bad somehow?
Personally I feel a GST/VAT tax is preferable to a tariff but I still think Tariffs are preferable in terms of taxation than an income tax.
Personally I feel a GST/VAT tax is preferable to a tariff but I still think Tariffs are preferable in terms of taxation than an income tax.