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abvdasker04/03/20252 repliesview on HN

If the Trump admin's goal were to reduce the national debt it would make way more sense to use fiscal policy (increase taxes) rather than some roundabout way to force the Fed's hand on monetary policy. The tariffs do basically function as a massive regressive tax increase in the form of a sales tax, but that comes with truly immense risks on the demand side of the economy. Guess what happens to tax revenue during a recession.


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TehCorwiz04/03/2025

There likely won't be any tax revenue. https://finance.yahoo.com/news/trump-wants-eliminate-income-...

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TaurenHunter04/03/2025

Trump is already increasing taxes (tariff is a tax on consumption of imported goods). A recession is inevitable if you need interest rates to go down.

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