Monday, April 07, 2025

Taxes, tariffs, revenue enhancements. All names for similar things.

Taxes, to pay for the government services that people use, are an unpopular concept. Often politicians will call them by a different name; for instance tariffs on imports.

Tariffs are basically taxes by a different name. They are more like consumption taxes; like sales taxes. They tend to be more regressive as focused on lower and middle income classes versus graduated income taxes which focus more on wealthy folks.

Right wing populism tends to shift taxes away from upper class people; possibly due to the law of unintended consequences. Don't believe all the rhetoric from right wing pundits.

Another phrase that is used instead of taxes is "Revenue Enhancements." After George Bush Sr. said "read my lips, no new taxes" he did sign some bills to help fund Social Security and so forth. They were called revenue enhancements.

Taxes are often needed to pay for the services that most people expect from government.

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