alt Hacker NewsDismantling the federal government by massively increasing the role of government in trade and imposing the biggest tax increase in a century?
That doesn't sound right...
Replies
giantrobot • 04/03/2025
The GP didn't say the people pushing this were smart or intellectually honest.
XorNot • 04/03/2025
Think of it like when you take a car apart and now it's taking up more of the garage then when it was together.
The next step is to cut income tax for under $150k/yr earners. Tariffs raise prices by 20%, tax cuts let you keep 20% more earnings.
This would make the federal government dependent on tariff income, and, as the theory goes, diminish the funds the government has as American industry grows to avoid tariffs.
Probably not going to work out as it is only a first order effect view, but that is the idea they are chasing.