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modrepub

(4,016 posts)
8. Tariffs Are The Largest Tax Increase In History
Sat May 10, 2025, 08:33 AM
May 2025

You'll never hear a Democrat or the M$M say this. And that's the problem.

Personally, I think if Congress passes this budget and addresses the debt limit there will be huge holes in the budget. Tariff taxes aren't going to offset the revenue loses from this billionaire tax cut and gutting the IRS. There are going to be all kinds of ways companies and people are going to adapt to thwart tariff collections not to mention the government infrastructure is not developed or in place to collect every dime owed via tariffs. Like prohibition, there are going to be lots of opportunities to smuggle goods across the boarder to avoid the tariffs.

As I said, we are going to be bleeding money in a few short months. It's got to come from somewhere and that somewhere is the bond market. With the world pissed off at us, I expect less desire to invest in US debt, which means interest rates on US debt will have to go up. If we can't raise money with our bonds, we are in a load of hurt and if this plays out I have no idea what will happen.

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