3-2-1 Here’s Why Trump’s Tariffs Are a Good Idea

By Tim Mooney

On the occasions when I would actually show up for class during my too few college days, at two of the best schools on each coast, my supposed major was macroeconomics. I mean, mostly I studied the “Three B’s” – Beer, Beach & Blondes, which has largely been my life passion. But I digress…

Here’s what the ENTIRE international press has missed in reporting about Trump Tariffs’ true macroeconomic goals. First, some tax truths. Tax policy is based around 3-2-1.

3. There are only 3 things you can tax, no more: 1-the making of money, 2-the spending of money, 3-the holding of money. Income Tax, Sales Tax, Property Tax. That’s it. (And property taxes at the federal level are unconstitutional.)

2. When setting taxes, two philosophical questions need to be asked and answered— to what extent should taxes redistribute wealth and promulgate desired behavior? I think the answer to these should be none and never. AOC & Bernie want a tax code punishing those they hate and telling you how you should live. “How dare you earn that much — and buy solar panels!”

1. Whatever you tax, you get less of. Tax income and you encourage people to work less. Tax spending and you sell less. Tax property and you reduce its acquisition. Of these three, I think the least marginal negative outcome is realized by the taxing of spending. Here’s why — putting a higher tax on my steak dinner at Mastro’s doesn’t make it less delicious or me less hungry. That sales tax has the least marginal nefarious results.

Now, the arguments against taxing spending is that it’s regressive. It hurts the least accomplished, because it taxes the same percentage to everyone on the purchase. Yea…so what.

AOC-Bernie progressive taxing is the same as saying: “The first touchdown is 6 points; the second is 5 points, the third is 4 points.” By this AOC-Bernie logic, the seventh touchdown should award your opponent 1 point, not you. You don’t need that touchdown. How dare you, Tom Brady!

Ok, but what about tariffs… how does that fit in?

Well, the international press should describe tariffs by its actual result – a national sales tax, just on other nations.

Many on the libertarian right with high-minded ideas have long called for the replacement of the income tax with a national sales tax. But another term for high-minded ideas is politically impossible ideas.

But this is exactly what Trump is doing by not so baby steps. Here’s the hidden dance.

Trump Policy Goals -- Stop taxing tips, overtime, Social Security, and on the first $150,000 (an opening bid) – the making of money. Start taxing stuff we buy from over there – the spending of money. It’s a huge philosophical shift in tax policy, one that I think is economically desirable and politically achievable.

If you stop taxing overtime, lots of people will want to work more hours. Rather than reducing the workweek to 32 hours, as the unproductive Left wants, natural incentive behavior will be for people to want to work 45, 48, 50 hours a week. A country, particularly those in the lower socio-economic rungs, will focus on being more productive. “Let’s score more touchdowns!”

Because… and my Liberal friends, you might want to sit down before you read this…hard work and accomplishing things is a moral virtue.

People saying, “I can’t wait to get above 40 hours of work this week,” especially in an era of declining demographics, would be the best thing possible to grow an economy from the bottom up. Having trouble finding a busser of tables at Cracker Barrel? Let Bobby keep all his earnings above 40 hours, and he’ll work all week and be there Saturday morning. And toss him an untaxed $5 bill on your way out. Make his day.

Have you heard a single word in the press – or anywhere – about this dynamic shift? If President Trump had said, “We’re imposing a national sales tax and shifting away from income taxes,” heads would explode. But in reality, that’s exactly what he’s doing.

Good for him. Better for America. Best for Americans.

Tim Mooney is a nationally recognized political consultant, specializing in public policy through the use of direct democracy ballot measures. The views expressed in this op-ed are his own and do not reflect those of Breaking Battlegrounds' staff.