Trump Proposes TOTALLY Scrapping Income Tax. Here’s How It Would Work… It Wouldn’t…

Writes Stephen Mack:

Like almost all political hacks, Trump is an idiot, oblivious to the laws of knock-on effects and unintended consequences.

Massive tariffs would be a huge regressive tax on low wage citizens who spend a much larger percentage of their incomes on necessary goods rather than leisure and entertainment services as well as financial investments.

And because ALL tariffs are passed on in the form of higher prices, Trump’s plan would also result in massive inflation for both B2B and consumer products.

Trump wants to use massive tariffs to motivate capital to reshore manufacturing in the U.S.  However, that would lower revenue from tariffs used to fund the federal government.  How would Trump replace that revenue?  Trump can’t have his tariff cake and eat it too.

Moreover, private capital is required to reshore manufacturing in the U.S. and that won’t happen because the capitalists know that they would be stuck with Billions in stranded assets if the tariffs were to go away.  And if the capital required to reshore manufacturing did magically appear, the impact from that would also be massive inflation because of the very high cost of manufacturing in the U.S.

Trump with his simplistic bonehead policy proposals is only a symptom of the systemic problems in the U.S., he is too stupid to be the solution.

Thanks for your attention.

See here.

The Best of Llewellyn H. Rockwell, Jr.