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h3lp | 5 months ago

It occurred to me that tariffs are really a backdoor way of introducing consumption tax (aka sales tax, VAT, etc). It has been a conservative policy goal for many years, as the conservatives believe that income tax penalizes entrepreneurship, but the politics make it virtually impossible to switch to because consumption tax is regressive, and it is a huge change. The tariffs debate and the general political atmosphere created a misdirection: voila, we have both income and consumption tax! The next development will be the politicians discovering to their horror the high levels of taxation, and abolishing the income tax. Brilliant!

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Amezarak|5 months ago

Consumption taxes being “right wing” is very American. In Europe most countries have 20-25% VAT.