Tariffs are Taxes

Some people don't seem to get it.

There seems to be some confusion amongst high-ranking members of President Trump’s cabinet as to whether tariffs are or are not taxes.

To settle the question, I spoke to one of the few economists whom I really trust. I asked sincerely, “Are tariffs taxes or not?”

He turned red in the face and said, “Jim, I cannot believe you asked that question. You know better. I will give you an exercise that will help you never forget the answer to that question.”

He took me to a blackboard and told me to write three words as many times as I could fit on the blackboard . Those three words were:

Tariffs are taxes.

Taxes get collected in many ways. One of those ways consists of tariffs.

I will never forget.

Nor should you.