US tax return filings drop by nearly 1M, extension requests rise

Re:US tax return filings drop by nearly 1M, extension reques... by mystified5016 on Monday April 07, 2025 @05:08PM (#43615966)

Tariffs are paid locally, in USD from the US economy to the government. Foreign states do not pay tariffs to the US government, they are paid by the business or entity importing the goods.

So this will not bring in more money. All the tariffs are paid from money that already exists in the domestic US economy.

Furthermore, tariffs are passed to consumers. Transitively this is an increased tax burden on consumers. Our taxes have, in effect, gone up.

[ Parent | on HN ]

Re:US tax return filings drop by nearly 1M, extension reques... by hedora on Monday April 07, 2025 @10:48PM (#43617934)

The white house numbers assume 75% of the tariffs will be paid by foreigners.

That’s actually not a crazy assumption for targeted tariffs. Imagine we only added a tariff to German cars. BMW and VW would have to compete with normally priced sedans, and lower their margins.

Of course, that doesn’t work if you tariff 100% of the suppliers of essential goods.

[ Parent | on HN ]

Re:US tax return filings drop by nearly 1M, extension reques... by DrillShopper on Tuesday April 08, 2025 @02:28PM (#43624988)

> BMW and VW would have to compete with normally priced sedans

What will keep the US auto makers from just being 5% under the imports' price? They will still win on cost, can blame Trump, and also capture all the money on the table.

[ Parent | on HN ]