Your statements made no sense.
You do know the expense of the US government was largely funded by tariffs in the past, don't you?
Yes, in the early history of the United States, government expenses were indeed largely funded by tariffs. Here's how it worked:
- Post-Revolutionary War to the Civil War: From the founding of the United States until the Civil War, tariffs on imported goods were the primary source of federal revenue. This was largely because the federal government had limited other means of income, especially before the introduction of income tax. The Tariff Act of 1789 was one of the first acts passed by the U.S. Congress, implementing tariffs to help fund the newly established government.
- Role of Tariffs: Tariffs served dual purposes: they were a significant source of revenue for the federal government, and they also protected nascent American industries from foreign competition by making imported goods more expensive.
- Shift in Revenue Sources: This reliance on tariffs began to change with the Revenue Act of 1861, which introduced the first federal income tax, although it was initially intended as a temporary measure to fund the Civil War. After the war, tariffs continued to be a major revenue source, but their importance gradually declined with the introduction of more diverse tax systems, including excise taxes and, later, the permanent income tax established by the 16th Amendment in 1913.
- Progressive Era to the Present: Over time, as the government's fiscal needs grew and economic policies evolved, the reliance on tariffs as the primary source of revenue decreased significantly. By the 20th century, income taxes, corporate taxes, and other forms of taxation had become the predominant sources of federal revenue.
So, while tariffs were crucial for funding the U.S. government in its early days, their role has diminished over time relative to other tax mechanisms. However, tariffs continue to be used, sometimes more for protectionist policies than for revenue generation in the modern era.
@Grok