Source: Reason
by Veronique de Rugy
“After more deadlines and deals, another round of President Donald Trump’s tariffs has arrived. With higher prices again needing to be justified—and on the heels of the “Big Beautiful Bill,” which didn’t exactly balance the budget—protectionists are positioned to once again play the revenue hawk’s card. There are multiple problems with this story. The idea is that tariffs — which some believe function like the consumption taxes that economists generally view favorably — can raise money more efficiently than income taxes. First, how can tariffs both protect American producers and reliably raise tax revenue? Think about it: Any tariff high enough to keep out lots of foreign products will not be levied on very many. Conversely, any tariff low enough to generate steady revenue would need to let trade continue by skimming off just a small portion in duties, offering only token protectionism.” (08/21/25)
https://reason.com/2025/08/21/no-tariffs-cant-replace-income-taxes/