Part 5/8:
In 2022, U.S. imported around $3.35 trillion in goods, yielding a mere $11 billion in tariffs. To keep pace with the previous income tax revenue, the tariffs would have to be increased astronomically—suggesting a hypothetical 130% tariff on all goods. This is seen as impractical, raising concerns about its viability without corresponding government spending cuts.
The Challenges of Implementing Tariffs
Transitioning to tariffs as a primary revenue source raises additional complexities:
- Economic Impact: Higher tariffs could lead to inflated prices for consumers, as businesses might pass the costs onto buyers, further complicating the issue of inflation already present in the economy.