References:
-- gregmankiw.blogspot.com/2009/10/valu...
-- project-syndicate.org/commentary/b...
-- pubs.aeaweb.org/doi/pdfplus/...
-- hoover.org/research/fla...
-- heritage.org/taxes/commen...
-- taxpolicycenter.org/briefing-boo...

From tariffs to consumption taxes? Probably not.

But in every storm there is a ray of light.

The team of economists around President Trump has been heavily criticized by their peers. Here is a suggestion for them to rally around and come out on top.

Supporters of President Trump have argued that the tariffs were just the starting point.

What if the end point is a flat-rate consumption tax with a universal transfer?

(You can call it an X-tax, FairTax, business transfer tax, or flat tax, in case VAT sounds too European.)

6. Send every patriotic working American a beautiful big check with the same amount, just like you did in 2020. But do it every year, not just when there is a pandemic.

You have achieved progressivity, helping the poor ✅🏆

5. Then, let each sector and industry leader come to you to bargain for their rate. They can give you lump-sum gifts to convince you.

There are some grounds to suggest that you will end up with the same tax rate for every good. That is production efficiency ✅🏆

4. Set the rates across sectors and products between 10% and 50%. Follow a "commodity formula" from some Ramsey guy with some Greek letters standing for "demand elasticities".

Fentanyl (from Canada) or luxury cars (from Europe) will get taxed more ✅🏆

3. Set a minimum 10% rate on all goods and services. Use most of the new revenue to pay down the national debt.

I'm quite confident that Treasury yields will go down. ✅🏆

2. Set up a VAT. Over-ride Congress's power over taxation because of the current under-saving over-consumption emergency. We’ve learned recently the House will go along.

If this makes Americans consume less and save more then no more current account deficit. ✅🏆

1. Most goods with a "made in US" label were made with significant foreign inputs.
You may call this "cheating" by other countries, hiding under that US label.

A tax over all consumption goods, as opposed to only those labelled “imported", gets to all. No more cheating. ✅🏆