▲ | mrtksn 3 days ago | |
Yes, but all these things will have bad long-term effects. The short-term effect would be payment into the federal budget and increase in local employment. Even with tariffs, the initial effect was to increase purchases before the tariffs hit. Later the companies started eating from their margins instead of increasing prices right away. So it all resulted in increased economic activity and then increased tax payments into the federal government. However, because this is tax on consumption, it will eventually reduce business profits and personal wealth of the consumers. Meanwhile, Trump can claim that the economy is booming and he is collecting huge tax revenues without any negative effects. |