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> Tariffs are taxes. But that's the point. They generate revenue for the government, allowing the government to lower other taxes with the result that people a
by AnthonyMouse 2y ago
> Tariffs are taxes.
But that's the point. They generate revenue for the government, allowing the government to lower other taxes with the result that people aren't actually paying anything more on net but you've created a penalty for goods imported from adversarial countries that domestic manufacturers can avoid.
- jquery 2y agoIf they're being used as a major revenue generator, and not simply as a strategic way to negotiate with countries, then tariffs should be determined by Congress. This is a huge power grab by the Presidency. Extreme across-the-board tariffs that Trump is talking about are unprecedented in American politics, outside of wartime perhaps. We are in uncharted territory and it's nothing good imo. If massive tariffs are so great, get a bill through the House and Senate.
- AnthonyMouse 2y agoNegotiating with other countries is traditionally done by the executive branch and tariffs are a significant lever in those negotiations. The President has the authority to do that because Congress passed a law that said so. They could pass a different law, if they want to, but what if they like the tariffs? Then all they have to do is lower other taxes as the tariff revenue allows them to do. Also, just because tariffs generate a lot of revenue doesn't mean that's their purpose. Their purpose is to put pressure on specific countries or promote domestic manufacturing. The revenue is just what allows other taxes to be lowered to balance out the impact on US consumers.