Ending income tax and relying on tariffs to fund the government could shift the tax burden from individuals to businesses engaged in international trade.
Tariffs would generate revenue by taxing imported goods, potentially encouraging domestic production and reducing dependency on foreign products.
There should also be legislation that encourages tax relief and incentives to keep businesses in the U.S
The increase in tariffs on imported goods is essentially passed along to the consumer. The tariffs that were instituted during the Trump administration have been maintained under Biden, yet domestic production hasn’t increased—in fact, the trade deficit has worsened since the tariffs were introduced. Ultimately, tariffs act as a tax on the American consumer.
The notion that businesses will shift to domestic production just isn’t realistic for several reasons. Take the apparel industry, for instance, which I know closely. We don’t manufacture clothing in the U.S. because there are very few manufacturers here, and those that do exist can’t come close to the quality or technological capabilities of overseas manufacturers. I personally tried over 20 different U.S.-based manufacturers, and it nearly bankrupted my business due to their lack of skill. On top of that, we no longer have a workforce willing to work in sewing factories. The cost is also a major factor—producing domestically can be up to 100% more expensive and often results in worse quality. That would mean significantly higher prices for average products.
In short, the U.S. doesn’t have the infrastructure, skill, or workforce to produce quality goods at a competitive cost. U.S. companies aren’t going to invest billions in building factories domestically given these challenges. Instead, they will simply pay the tariff and pass the costs onto consumers, which ultimately hurts the average American.
