The tariff system in USA is used by politicians to shake down businesses.
First, it is possible to get a waiver on duty for your imports, if you have enough money to hire a lobbyist. Such waivers can mean a lot of money, and the lobbyist helps you share your "savings" with the politicians.
What a conflict of interest. Congress cans set tariff rates on who it wants to, and then shake them down when the tariffs hurt. And then claim to be helping when they shake down the victims.
When USA was established, the only money the Fed Govt could get would be on duties. This would keep the government small, because, the theory went, we only import crucial things, and we could not afford to tax crucial things very high. As late as 1860 95% of the federal government income came from tariffs.
After the civil war, there was no check on federal power, so the feds went crazy taxing everything, making wars, and adding income taxes as the years progressed. Today about 1% of the fed income comes from duties, but it is a great way for politicians to get money.
People talk about jobs and level playing field and taxing and tariffs without understanding a simple point: the end user pays all taxes. The consumer pays all taxes. People get mad when GE pays no taxes. GE is a legal fiction. It cannot pay taxes. If it writes checks to the government, the money comes from its customers, the end users.
When you eat a Hershey Bar, you pay all of Hershey's taxes. So any tax on any company is a tax on consumers. (If a company goes out of business because it cannot pay its taxes, then the investors in the company are in effect the consumers, since they were the last to touch the company).
If a state sets a tax, then consumers pay it one way or another. And taxes are not the only way a state gets money. Sometimes the state representatives just take it.
Of course, any taxes are completely unnecessary. There is nothing the state does that cannot be otherwise and better provided in a free market. In fact, the longest running, largest government the world has ever known charges no taxes and is completely voluntary.
Feel free to forward this by email to three of your friends.
First, it is possible to get a waiver on duty for your imports, if you have enough money to hire a lobbyist. Such waivers can mean a lot of money, and the lobbyist helps you share your "savings" with the politicians.
What a conflict of interest. Congress cans set tariff rates on who it wants to, and then shake them down when the tariffs hurt. And then claim to be helping when they shake down the victims.
When USA was established, the only money the Fed Govt could get would be on duties. This would keep the government small, because, the theory went, we only import crucial things, and we could not afford to tax crucial things very high. As late as 1860 95% of the federal government income came from tariffs.
After the civil war, there was no check on federal power, so the feds went crazy taxing everything, making wars, and adding income taxes as the years progressed. Today about 1% of the fed income comes from duties, but it is a great way for politicians to get money.
People talk about jobs and level playing field and taxing and tariffs without understanding a simple point: the end user pays all taxes. The consumer pays all taxes. People get mad when GE pays no taxes. GE is a legal fiction. It cannot pay taxes. If it writes checks to the government, the money comes from its customers, the end users.
When you eat a Hershey Bar, you pay all of Hershey's taxes. So any tax on any company is a tax on consumers. (If a company goes out of business because it cannot pay its taxes, then the investors in the company are in effect the consumers, since they were the last to touch the company).
If a state sets a tax, then consumers pay it one way or another. And taxes are not the only way a state gets money. Sometimes the state representatives just take it.
Of course, any taxes are completely unnecessary. There is nothing the state does that cannot be otherwise and better provided in a free market. In fact, the longest running, largest government the world has ever known charges no taxes and is completely voluntary.
Feel free to forward this by email to three of your friends.
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