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Joined 3 years ago
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Cake day: June 13th, 2023

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  • Of course, but income tax is progressive (rates get higher with income) whereas tariffs result in a flat increase which disproportionately affects the poor because it represents a higher percentage of their income.

    Let’s take cars, for example. If steel tariffs mean that a car costs $500 more than it did before tariffs, that $500 has a far bigger impact on someone who makes $40k a year versus someone who makes $200k. That $500 is borne in full by residents of the country that imposed tariffs, which is why tariffs really only penalize your own people in addition to whatever industry of your trade partners you’re targeting.