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By Ryan McMaken
September’s fiscal surplus was not thanks to tariff revenue. In truth, it was thanks to Americans paying more in income tax. Tariffs were only 5.7 percent of revenue.
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Nonetheless, the administration has been crowing about how tariff revenue increased to $31 billion during August and September, as if this would put any sort of significant dent in fiscal policy. For example, September’s tariff “haul” of $31 billion amounts to a mere 5.7 percent of all revenue ($543 bln) for the month. Looking at the Treasury’s revenue report, we can see that the true sources of the increase in September revenue were individual income taxes and corporate income taxes. Tariff revenues are so insignificant in the graph that they have been included under “other.”
Politicians have no incentive to be fiscally responsible and therefore they aren't. But they sure have a lot of incentive to lie about it.
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