Big capital has constantly decreased its contribution to the state – creating a gap in the state’s coffers which is then filled by more and varied taxes on ordinary people – ultimately shrinking the very market big capital needs to sell its increased production of goods.
Tariffs and Taxes
Before the income tax was imposed on us just 80 years ago, government had no claim to our income. Only sales, excise, and tariff taxes were allowed.
— Alan Keyes
Free trade areas and free trade agreements have allowed for the growth of multinational corporations but the concomitant reductions in tariffs caused a decline in income for the states involved.
Tariffs are defined as “a tax…