” I’d much prefer we tax consumption instead, which is why I find the Fair Tax appealing.”
It’s why I prefer tariffs gradually replacing income taxes. Like it used to be pre 1913.
“The old adage goes, ‘If you want less of something, tax it. If you want more of something, subsidize it.’
Yup. We want less imports and more jobs.
“The geniuses in our government don’t seem to be able to figure that out.”
The geniuses in our government want more Treasury sales and higher taxes. IOW more loot for themselves.
Prior to 1913, America was almost wholly self sufficient, though we had active international trade even then. It was quite possible for the states to trade with one another, as we produced almost everything we needed domestically. It made for a simpler life, with far less foreign entanglements.
But that was then. The world has become increasingly connected, and continents and nations have become very dependent on international trade.
At this point, tariffs are more a tool to make other countries play fair with us, than a means to fund the federal government.
I don't think we could properly fund our government through tariffs, even if our government were greatly downsized. When a Honda Accord costs 30% more than a Chevy Cruze, folks will buy the Chevy, so there goes the tariff money to fund the government.
How does the government make up that shortfall?
There's no doubt they'll do it by taxing the citizens. Now, how they go about collecting those taxes, is the question. Do they continue to violate basic economic axioms, or do they wise up and begin taxing the consumption side of economic activity?
Taxing consumption makes everyone a taxpayer, and equally spreads the burden of funding the government across every class of citizens. States already use this method of taxation to fund their governments. Unfortunately, many states also assess a tax on income, so they're taxing production AND consumption. That's just thievery, in my book.
Anywho, this is a huge subject, and we could go on for months discussing it. I'm just throwing a few of my thoughts out there.