Reason #1 to Vote Blue on Nov 5
Higher tariffs raise consumer prices. Why? If the United States puts a higher tariff on products, let’s say charging a car manufacturer in Europe $1,000 to sell its automobile in the US, that company does not want to reduce their profit. So that $,1000 gets added to the sticker price in the US. So, generally speaking, it is with all tariffs on imports.
The burden for these higher tariffs falls on those with less disposable income: the middle class and the poor. That’s because people with abundant disposable income will pay whatever it costs to get what they want to buy.
Trump wants more and higher tariffs, using tariffs as a means of collecting revenue for the US Treasury. He has even suggested it would be a good idea to get rid of the income tax by raising tariffs on imports.*
Sure, some tariffs are necessary. But a trade war that needlessly raises prices across many products is wrong. And thinking of using tariffs as the main source of our national revenue is considered regressive… meaning a tax that hurts middle-class workers and the poor.**
This ignorant idea would have a terrible impact on the economy generally and, again, would be a huge burden on the middle class and poor.
Resources: * “Who Pays Tariffs? How Do We Know?,” by Paul Krugman, economist.
** Wikipedia: What is a regressive tax?
