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Thomas L. Hutcheson's avatar

What wins?

Deficits increase not only from the extension of the 2017 “Tax Cuts for the Rich and Deficits Act” but with new monstrosities like not tax no tip and overtime, higher standard deductions and reduce taxes of SS benefits. And spending on Immigration restriction/deportations.

OK there IS a slight reduction in taxation of business income, but why not rates?.

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Andrew L Sullivan's avatar

Trump is using tariffs to push open closed markets. However, before you freak out over tariffs as if it is 1860 or 1828, you should realize in the digital economy, the impact of such tariffs may be far more muted than you realize. Producers and consumers will create new networks around such new tariffs. Be patient, and wait and watch.

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Vance Ginn, Ph.D.'s avatar

You seem to suggest more reason not to distort markets with tariffs, correct?

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Andrew L Sullivan's avatar

No. In a digital economy, a tariff acts more like a consumption tax. Yet, to enforce free trade, the threats of tariffs become necessary. Other countries impose high tariffs. To ignore such high tariffs and not influence them to change would mean leaving business behind. The real danger with tariffs is they can result in trade wars, if not war itself. There in is the real problem with tariffs.

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