this post was submitted on 04 Apr 2025
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If Trump had introduced a 10% national sales tax, would the perception be the same?
Tariffs are a patriotic sales tax with an exception for US companies. Of course MAGA likes that.
The bad thing is that it is a flat tax and not progressive. Why is that not the main issue of the debate?
The perception would absolutely not be the same, and US companies are also not exempted from paying them. Most people don't understand that tariffs are taxes paid on imports, paid by those who import them. They think tariffs are magical and the money comes from foreigners.
People may start to understand if/when the price hikes start affecting them directly. For now only retirees with stock market holdings have seen a drop.
They meant exception for US made products, I think.
The importing company just adds the tariffs to their sales price. Tariffs are paid by the last one in the chain, the customer. That's why it's like a sales tax.