4 ms·
After reading a bit about the history of tax in the USA, I was surprised to learn that in the very beginning federal government was mostly funded by tariffs. S
by hippich 8y ago
After reading a bit about the history of tax in the USA, I was surprised to learn that in the very beginning federal government was mostly funded by tariffs.
So.. Extra tariffs will bring extra tax revenue. Will federal government cut income/corporate taxes to adjust for it? Or perhaps any paid tariff can be written off of tax bill?
- psergeant 8y ago> So.. Extra tariffs will bring extra tax revenue In the short term. In the long term, that’s far from clear. The world economy is rather different now than it was when America was a fledgling economy being exploited by the Brits
- passthefist 8y agoAnd I've seen some articles/papers suggesting that protectionist policies can make sense for an emerging/developing economy to make sure that established/developed economies don't usurp that growth by blocking them from moving up the value chain. So it may have been good policy back when America was a fledgling economy being exploited by the Brits.
- oldsklgdfth 8y agoI believe that is the way that S.Korea developed it's economy. Specifically, they raise tariffs on automobiles to boast their own automotive industry. I think this book explains that: https://www.amazon.com/Bad-Samaritans-Secret-History-Capitalism/dp/1596915986 https://www.amazon.com/Bad-Samaritans-Secret-History-Capital...
- mprovost 8y agoIncome taxes (the primary source of current US gov't revenue) were unconstitutional until the 16th amendment in 1913.