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Thanks for letting me know that that wasn't clear. The point is that Tariffs are not happening in an economic vacuum; but are happening in the same space as a
by smileysteve 9y ago
Thanks for letting me know that that wasn't clear.
The point is that Tariffs are not happening in an economic vacuum; but are happening in the same space as a 14% corporate tax break.
The extension of this is that tariffs collect revenue (much like taxes did) while enforcing a political agenda (encouraging changing of sources).
If a "trade war" tariff exchange is isolated to raw materials (steel, aluminium, pork, etc) then tariffs are preferable to a higher finished good tax rate because there is margin on the finished good.