Tariffs Prove America Can Afford Higher Taxes: Robert Burgess

If the Trump administration’s misguided tariff policy has proved anything, it’s that corporate America can afford to pay higher tax rates without the disruptions that Republican devotees of supply-side economics always say are inevitable. This is an important lesson as the warnings over the country’s elevated debt and federal budget deficits become more dire.

For supply siders, higher taxes are like kryptonite to an economy, discouraging businesses from investing and damping entrepreneurial activity. And yet, the economy has proven remarkably resilient despite the tariffs, which are similar to a tax on businesses and consumers. The duties — paid by importers and either ...