Replace Income Tax with Tariffs?

[JustWinBaby]

(06-21-2024, 03:02 PM)Dill Wrote: That doesn't sound like a "shortfall." The goods would be available.

But you raise another issue--if people buy less, especially the tariffed goods, 
then the Trump proposal would not be able to make up the loss in tax revenue. 

So deficit spending would have to jump to meet the shortfall, or Congress would have 
to consider cuts in government spending. Perhaps MASSIVE cuts. 

That would be an interesting experiment.

No, it depends on whether people choose to save their money or purchase close substitutes.

Tariffs are generally considered inflationary.  Whether that is a net positive or net negative to government revenues depends on multiplier effects, but to the extent inflation slows growth revenues would take a slight dip.  But the purchasing power of the consumer would take a huge hit.