06-09-2016, 06:46 AM
Actually I would prefer an across the board tariff. The rate would be set low and continually raised until it reaches the point where revenues are maximized. That is, the product of tax rate x trade volume is to be maximized. My gut feeling is such a tax might raise 300-500 billion annually. Use it to shore up Medicare. Lots of European countries have value-added taxes (i.e. sales taxes on domestically-produced goods+services). Republicans love value-added/sales taxes (this was the centerpiece of the Cruz program). Why shouldn't the US just "go Cruz" on foreign-produced goods+services?