Tariffs: A tax by any other name

Metro Creative Connection

If it looks like a duck, walks like a duck and quacks like a duck, it must be a duck!

There’s so much debate, consternation and serious dialog about the smallest tax increases. An increase in states tax, local sales tax, gas tax and we debate “until the cows come home.” Often, politicians decline the increase.

Special interests lobby to reject any tax; even 1/2% tax increases are voted down. Yet the president levies extreme tariff amounts for seemingly frivolous or political reasons.

By definition a tariff is “a tax charged on goods bought from other countries.” A 30% tariff means a $10 product will have a $3 tax paid to the receiving country’s government, for a total cost of $13.

Whether it’s a tariff on raw material or finished product, the purchaser pays. On a $50,000 automobile, a 30% tariff will be $15,000. Tariffs are lose-lose for sellers and buyers. Only the government receiving the tariff can claim a benefit.

There would be a serious uproar if any governmental entity tried to raise taxes by 30%. Until the well runs dry, when consumers stop purchasing products that have outrageous tariffs, this 30% tax will continue to be paid by consumers.

Using tariffs for political purpose is punishing your own citizens. Worse, charging them the tariff in increased product cost is a hidden sales tax. Not a small percentage like 1% to 2%, but an outrageous tariff/tax of 30% to 50%, as our president is applying.

Tariffs as a negotiating pressure are a bullying tactic akin to stealing your lunch money on the school playground.

We can curtail discretionary spending on non-essentials until political bullies realize the hurt being levied on the buying public. That new car purchase will have to wait until country to country trades are without exorbitant tariffs, a tax on you and me.

Editor’s note: This writer is using a pen name. Please send your comments to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.