Duties generated $37.8 billion in revenue for the U.S. in April and May, after President Trump imposed new tariffs on steel, aluminum, cars and goods from China, Mexico and Canada.
The tally, while a big jump, still falls short of the amount Trump has said the U.S. is raking in. Duties collected in May made up 6% of the government’s monthly income and increased 42% from the $15.6 billion the U.S. received in April, according to Treasury data. The agency collected $22 billion in May.
Most of the duties collected in recent years have come from imported Chinese goods. But Chinese imports plunged this year, as Trump imposed a series of escalating tariffs on Chinese goods. In April, the U.S. imported about $24 billion in goods from China, the lowest figure since 2010, excluding the early months of the pandemic. . . .
I have often said (and I stand by) “spending is the real problem.”
But since we are not addressing that a tax increase to reduce the deficit should not be off the table.
Tariffs are a superior form of tax to many of our current taxes (e.g payroll taxes.)
Our two-tier tax system, which punishes producers but rewards importers is horrible.
I like the CATO, the Tax Foundation and many others, feel taxes should shift away from taxing producers and toward consumption-based taxes, consumer taxes etc…
For each of the above reasons, these recent developments are positive developments.
The first truly wealthy person I ever met (Cong. Bill Clinger of Pa, I met him while I was a HS student) was known for his extremely frugal lifestyle.
He probably had a nice house, but he bought his suits from a local Men’s Store in small-town PA, drove a 10-year-old hatchback with body damage, ate BLT sandwiches at his desk, etc… He basically lived middle class, even working class. If you met him you would have noticed he is well-spoken and cerebrel, but figured he must be some low- to middle-manager at the local quarry company or steel mill or textile plant.
It occurred to me then, and it occurs to me now, that someone who lives like that should be taxed like someone who lives like that, not punished and taxed on money he continually reinvests in America.
If you don’t like CO2 tax gasoline.
If you don’t like cigarette consumption tax tobacco.
(I don’t recall you having any problem with those.)
If you don’t like imports, esp where ther are unfair trade practices, tax imports.
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PS
The tariffs are already in place.
They are already reducing the deficit.
So, if/when we get the deficit under control I’ll let -->YOU<-- pick which tax to reduce.
I’d bet my last dollar, if you are honest you will not pick tariffs.
We built an economy that is the envy of the world…one in which more citizens have access to more affordable goods and services than any place in the world, all while continuing to be the worlds 2nd largest manufacturer, on imports.
Again you are coutning consunmption as the one and only measure of the eocnomy.
A kid racks-up $20,000 worth of debt to go on Spring Break.
He declares “Look my eoncomy is great. I am consuming all sorts of stuff.”
Meanwhile every adult knows he is making himself worse-off.
