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Originally Posted by pan6467
If you raise import tariffs to what other countries have, open a manufacturing sector that pays workers decent wages, and build products that are sold and taxed here, the tax base rises exponentially.
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Actually low tarrifs bring in more money to the goverment. This allows international business to compete and still pay the tax. But our Govermnt has signed into many free trade agreements, so we lose our tariff allowing companies to send manufactuing over seas. And not have to pay a tariff when they are brought into the country. So the Goverment loses a bunch of money that is no longer coming in.
With the economy doing worse and the goverment getting all of its money off of INcome tax deficits will rise greatly when there are job loses, if we still had ourr tariffs then the goverment would have a fall back on money.