Breitbart Business Digest: Tariffs Are Not Taxes on American Consumers

amounts to a tax on the American middle class calls for a deeper dive into why these assertions miss the mark.. They are government-imposed taxes on imported goods, levied directly on importers, typically large corporations. These tariffs act as a kind of corporate tax—not on profits, but on the value of goods produced elsewhere and brought into the U.S.

. This assumes, improbably, that businesses are charging less than what consumers are willing and able to pay. If that were the case, businesses would be leaving potential profits unclaimed—a scenario at odds with market realities., balancing consumer demand, supply, and competition. Imposing a tariff on imports doesn’t suddenly grant businesses more latitude to hike prices.

Though plausible in theory, this notion falters in the context of international trade realities. Imagine washing machines produced domestically or in Country X. If Country X’s manufacturers can secure government subsidies for exports, they can threaten domestic competitors with economic ruin by promising to slash prices below production costs if a rival arises. This deters domestic investment without actual price drops, granting foreign producers monopoly pricing power.

and do not constitute a tax on the American middle class. They are what they appear to be: a tax on corporations who import goods and on foreign producers who export them into our market.Biden Claims U.S.

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