Comment Re:National sales tax (Score 1) 268
Companies should be hating the idea of tariffs. It's like a tax, that is collected before even receiving any revenue
It also makes it more difficult to ensure a profit. The company has to "front" even more money (tariff) before they can start selling the item. If they overestimate the product's sales desirability, it takes away available operating credit to do other things.
, at a higher rate than any sales or income tax.
It also depresses sales, because the tariff raises the price of the item to consumers, who subsequently may become less "carefree" about their spending patterns. An income tax doesn't affect consumer purchasing perception; the absence of tariffs surcharges do not trigger "hesitation" towards a purchase, based on price. Finally, tariffs end up suppressing the money raised for state and local sales tax; they need revenue as well.