gil wrote: ↑Thu Mar 20, 2025 7:59 pm
bpj wrote: ↑Tue Mar 18, 2025 9:09 pm
gil wrote: ↑Tue Mar 18, 2025 8:59 pm
There is a lot of political intrigue involving these tariffs on Canada, I agree. Drugs, sovereignty, etc. We also have a *heavily* subsidized agricultural sector, so even without any tariffs it's hardly a "free market." My comments are ignoring the politics. I can see that might be one of the reasons that leaders use tariffs, but as an economist (of sorts) I'll still say they cause harm.
What's the $200 billion in subsidies?
I'd feel fine about tariffs if it eliminates the federal income tax, would you? It becomes a consumption tax rather than a tax on earnings.
The link in the first post of this thread was Trump talking about the $200B, I'm guessing mostly military protection. Which, I don't know why Canada even needs it. Their most likely enemy is the moose.
viewtopic.php?f=9&t=9883&p=318710#p318690
Interesting idea to replace income taxes with tariffs. First reaction? That's * a lot* of money to replace! It's about 5 trillion per year, isn't it? The tariffs would have to be around 100% on *everything*, and even with no exemptions from tariffs, the decrease in imports (because of the tariff/tax) would cut into any potential revenue.
I do my best to buy American, but I am fortunate to have the luxury to pay higher prices, in many cases, to do this. I might personally benefit from higher tariffs in exchange for no income tax. But I suspect there are people who are less fortunate than I am, who purchase cheap imported stuff to make ends meet. So I am concerned about that effect (i.e., people on tighter budgets being hurt the most) of having high tariffs.
Do you really think it's a good idea? Do you think it would work?
Good stuff gil. First, Grok says in 2023 the US government collected $2.2T in income taxes. I haven't seen a $5T figure.
Here's where I'm at based on what I've heard, and what I've gathered asking a.i.
1) I've heard they're talking about eliminating taxes for everyone
making under $150,000
2) Grok says the share of taxes that those taxpayers pay was ~$700B in 2023.
3) I don't think we (our government) need to continue spending what we have in the past.
4) Total US goods imports were ~$3.1 Trillion in 2023
Grok says that to cover $700B there would be an ~25% tariff across the board on all products, including oil, steel, and lumber.
I'm not an economist, so what do I know about whether it's a good idea or not. (I did minor in economics in college, but, I thought the entirety of going to college was a gigantic waste of time that I could have learned by reading like 4 books. College is a scam imo.)
However, I agree that taxing citizens on their income isn't the right way to fund government, because we become their minions that way, instead of the government workers being our minions.
From what I've seen, Trump would like to make some form of nuclear treaty agreement with the major powers. As a result, our defense spending could be scaled back significantly.
Right now, government spending is ~25% of GDP compared to 2-3% back in 1913 when they made the income tax permanent.
So, if they cut back on government spending significantly, as they should, I don't see any reason it couldn't work to accomplish their goal (eliminating federal income tax for those under $150k).
In the end, if that means foreign products cost the same in our markets that domestic ones cost, yes I'm fine with it. Poor people already get food stamps anyways. And they're not bargain shopping with those dollars anyways according to most evidence I've seen. They're buying steak, candy, and soda along with their essentials.