@peace
Well-known member
When I was in business school we discussed policy ideas around tax. One that came up was the idea that business elites wanted to move to a consumption based tax (sales tax) vs an income tax. That way the people that consumed products would pay for government budgets vs taxing peoples income. The idea was that it is supposed to cause economic growth, but in reality it was acknowledged that it would effect middle and lower class people negatively as consumption makes up a bigger portion of their income.
Trump is branding his tariffs on Canada as a way to secure the border from fentanyl and migration. Based on last years seizure data there was 43lbs of fentanyl seized at the Canada US border. Based on his commentary around tariffs being good for generating tax revenues, it seems likely that he is using the tariffs to fund the tax cuts for businesses. That way either tax revenue is generated from tariffs, or domestic options for imported goods pop up, which in theory indicates an increase in jobs in America, and ultimately a different source of tax revenue. In either case a win win for his administration and the people close to them, even if the average American consumer is the one ultimately paying the cost of the tariff through higher prices.
Another possibility is that his tariffs are actually the first step in the economic warfare that he mentioned to try absorbing Canada as a 51st state.
A final possibility that I see is that he is using Canada and Mexico to set an example to the world. I.e. "if we are willing to do this to some of our biggest trading partners and allies, imagine what we will do to you" type of messaging.
I am not really sure what his intent is but it sure seems like the vast majority of Americans and people of either side of their border are in for some real economic pain, without a clear benefit to his voter base, even if it is just a negotiation tactic. This move has immediately made the US a less reliable trading partner throughout the world, and that will have impacts for Americans for generations to come.
Please discuss why you think the tariffs are in place or how you think they will play out.
Trump is branding his tariffs on Canada as a way to secure the border from fentanyl and migration. Based on last years seizure data there was 43lbs of fentanyl seized at the Canada US border. Based on his commentary around tariffs being good for generating tax revenues, it seems likely that he is using the tariffs to fund the tax cuts for businesses. That way either tax revenue is generated from tariffs, or domestic options for imported goods pop up, which in theory indicates an increase in jobs in America, and ultimately a different source of tax revenue. In either case a win win for his administration and the people close to them, even if the average American consumer is the one ultimately paying the cost of the tariff through higher prices.
Another possibility is that his tariffs are actually the first step in the economic warfare that he mentioned to try absorbing Canada as a 51st state.
A final possibility that I see is that he is using Canada and Mexico to set an example to the world. I.e. "if we are willing to do this to some of our biggest trading partners and allies, imagine what we will do to you" type of messaging.
I am not really sure what his intent is but it sure seems like the vast majority of Americans and people of either side of their border are in for some real economic pain, without a clear benefit to his voter base, even if it is just a negotiation tactic. This move has immediately made the US a less reliable trading partner throughout the world, and that will have impacts for Americans for generations to come.
Please discuss why you think the tariffs are in place or how you think they will play out.
