Tariff Theory

Some interest has been expressed on my current views on Tariffs. I first must say that my ideas in the area scatter like chaff in the Wind, as support or antagonism towards Tariffs comes only from estimated overall performance of this form of Taxation, with chaotic Readings endures on all factors leading to the determination of value in Tariffs. I will try to list what is wrong with Tariffs, then list what is right.

What is Wrong with Tariffs:
1) Tariffs have always been decimated through Splinterization of the applicable rates. Tariffs need to be uniform and low, set to equalize non-Material Costs transference.
2) Tariffs, if not initially, has always been eventually utilized to reserve domestic markets for domestic Producers.
3) Tariffs have traditionally been utilized as a diplomatic foil to counter effective foreign interests adverse to American foreign policy.

What is Right with Tariffs:
1) Business uses the lack of Tariffs to avoid high Labor Costs, and evade payment of Taxes for Social Costs. Business and Industry can demand less Property taxation, below-Cost Utility pricing, and eliminated Marketing and Transportation Costs. Each of the Above Cost reductions to Business must be replaced by added Taxation of Laborer and Consumer.
2) Study of Tax Impact stresses Taxation cannot impact one Productive Component alone–unless this Component suffer economic functioning failures which will curtail the greater economy. Tariffs are a good Means to take much of the Tax Burden off Labor and Consumers, without impeding economic performance. Business pays for the higher Production and Marketing Costs by higher Product pricing, but only by reducing Discretionary Consumption by Price alone (without Income drains).
3) Tariffs has always had a beneficial effect upon the quality and durability of Products sold in domestic markets. Importers will only pay the additional charges of tariffs with improvement of these areas, and domestic Suppliers must match the increase in quality.

It makes Sense to utilize Tariffs to promote the advantages of Tariffs, while employing cognizant application of Tariffs to counteract the bad effects; One doesn’t throw the Baby out, because of the dirty Bath water (can’t believe I used such a stupid cliche). Tariffs provide an efficient Tax Impact spread, improve the quality of total Product, and actually costs Business nothing in long-range Profitability; All while better provisioning of the Consumption markets at supportive Pricing. lgl