So here's a thing I don't understand about tariffs - or at least Trump's theory of tariffs. [View all]
At least on Earth I, tariffs are imposed in order to make a particular imported product more expensive than the home-made equivalent. People either buy the domestic product or pay extra for the imported one, with the tariff being paid to the Treasury. Trump claims (A.) that American businesses will build lots and lots factories to produce the products that are now being imported, creating lots and lots of jobs (at least this is his sales pitch to MAGA), and (B) that tariffs can make income tax unnecessary. But here's the fallacy: If (A) is successful, (B) won't work. That is, if the factories start making all the things in the US that no longer have to be imported, tariffs can't be collected on those things. And without the income tax, now there's no revenue at all. Now what? How does he sell the abolition of the income tax if there aren't any tariffs to make up for it? There has to be some money in the Treasury for Trump and Musk to grift. Am I missing something?