Not likely all of it. The exporters & importers often absorb
Posted on: May 8, 2025 at 15:01:57 CT
JeffB
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some of the tax themselves. If the tax is 10% and a local product is only 1% more than the original price & that money is going into the local economy to be invested or respent, perhaps over and over.
All of the tax is going into the US treasury. Whether it is going to reduce the deficit or reduce the increase in the deficit, it will still tend to help moderate inflation &/or interest rates modestly. The local producers will also be paying tax to the US government, rather than foreign producers paying tax to their government... with the same dynamic in play regarding deficits & their effects upon consumers & taxpayers.