Trump has been in office for eleven months, . . . but he's expected to turn back what Biden (and his auto pen writing people) did in four years. Right. Got it.
Against the tariffs? So this has no merit? "The available data show that U.S. tariff receipts surged sharply in fiscal 2025, with official and independent tallies converging around $195 billion for the year, up from roughly $77 billion in fiscal 2024; the increase reflects new and expanded tariffs implemented during 2025 (fact check)."
Initially, importers pay the tariffs. Ultimately, the consumer picks up that tab. There’s no other way around it because the importers have very low markups and profits off volumes.
Why hasn’t these price increases hit consumers harder and quicker? Several reasons; existing contracts, existing inventory, uncertainty of tariff from one day to the next, and temporary absorbing some of the cost to ease into it. But Walmart, Target, Costco, et al have all cost will continue to rise.
What is the end goal? IMO, look at it in the same sense as placing a federal sales tax with the goal of eliminating the income tax. Tariffs placed on goods for federal revenue, importers charge venders more for those goods to offset tariffs,, venders charge consumers to offset those hikes, income tax burden lowers because of federal tariff revenue.
Doesn’t sound all that bad so what’s the trade off? A sales tax and tariffs have reasonably been argued as a disproportional tax that puts more of the burden on the consumer. And history shows that prior to the early 1900s enactment of an income tax, the economy was precisely that- the ultra wealthy and most everyone else working for the company store.
Argue that if you like but ultimately, this should be legislated rather than dictated by one branch of government, in my opinion.
Milton Friedman would disagree with your historical analysis, but at any rate, that said, really, . . . going to a sales tax system is a much better system. I live in a city south of Seattle that boasts a very diverse ethnic and racial population (every language you can think of is spoken). As I go about my business, . . . let's just say that there is no way that you can convince me that these people are paying their Federal income tax (let alone their State income tax). A sales tax, nationwide, county wide, and local - is the ONLY *fair* way to do it.
Sure, we can disagree on my historical or even present analysis and I appreciate that input. You present a constructive argument that has merit, that a sales tax system would be better. I respectfully disagree but that discussion is really an aside.
What really matters here is how this taxation by tariffs becomes law, by executive order or do the other branches have a say. That’s the issue I’m concerned of.
Anonymous- I haven’t thought about taxation by sales tax. We then could pay what we want in taxes by buying or not. The wealthy are taxed by spending more and that makes progressives happy. Income taxes would have to be eliminated through a Constitutional Amendment. Joe
"Yeah yeah, it's all one way and then the other way." Hank Hill
ReplyDeleteYes, that’s correct. And groceries prices are way down. Don’t let that $8 a pound for ground beef fool you.
ReplyDeleteTrump has been in office for eleven months, . . . but he's expected to turn back what Biden (and his auto pen writing people) did in four years. Right. Got it.
ReplyDeleteNope. But I do expect him to be consistent. Do tariff raise prices (duh) or not.
DeleteAgainst the tariffs? So this has no merit? "The available data show that U.S. tariff receipts surged sharply in fiscal 2025, with official and independent tallies converging around $195 billion for the year, up from roughly $77 billion in fiscal 2024; the increase reflects new and expanded tariffs implemented during 2025 (fact check)."
ReplyDeleteLet me ask a question anonymous— WHO pays the tariffs?
ReplyDeleteJoe
Initially, importers pay the tariffs. Ultimately, the consumer picks up that tab. There’s no other way around it because the importers have very low markups and profits off volumes.
ReplyDeleteWhy hasn’t these price increases hit consumers harder and quicker? Several reasons; existing contracts, existing inventory, uncertainty of tariff from one day to the next, and temporary absorbing some of the cost to ease into it. But Walmart, Target, Costco, et al have all cost will continue to rise.
What is the end goal? IMO, look at it in the same sense as placing a federal sales tax with the goal of eliminating the income tax. Tariffs placed on goods for federal revenue, importers charge venders more for those goods to offset tariffs,, venders charge consumers to offset those hikes, income tax burden lowers because of federal tariff revenue.
Doesn’t sound all that bad so what’s the trade off? A sales tax and tariffs have reasonably been argued as a disproportional tax that puts more of the burden on the consumer. And history shows that prior to the early 1900s enactment of an income tax, the economy was precisely that- the ultra wealthy and most everyone else working for the company store.
Argue that if you like but ultimately, this should be legislated rather than dictated by one branch of government, in my opinion.
😎
DeleteExactly. Those billions have been paid by importers and ultimately the consumers.
Joe
Milton Friedman would disagree with your historical analysis, but at any rate, that said, really, . . . going to a sales tax system is a much better system. I live in a city south of Seattle that boasts a very diverse ethnic and racial population (every language you can think of is spoken). As I go about my business, . . . let's just say that there is no way that you can convince me that these people are paying their Federal income tax (let alone their State income tax). A sales tax, nationwide, county wide, and local - is the ONLY *fair* way to do it.
ReplyDeleteSure, we can disagree on my historical or even present analysis and I appreciate that input. You present a constructive argument that has merit, that a sales tax system would be better. I respectfully disagree but that discussion is really an aside.
DeleteWhat really matters here is how this taxation by tariffs becomes law, by executive order or do the other branches have a say. That’s the issue I’m concerned of.
Anonymous- I haven’t thought about taxation by sales tax. We then could pay what we want in taxes by buying or not. The wealthy are taxed by spending more and that makes progressives happy. Income taxes would have to be eliminated through a Constitutional Amendment.
DeleteJoe