"So you believe taxes are inflationary. So join me and cut taxes, and that will be disinflationary."
"Bessent argued behind the scenes, a "huge number" of Democrats are actually in favor of tariffs but can't say so because they've been labeled "the Trump tariffs," forcing them to avoid deviating "from the hive.""
"The tariffs are currently bringing in a lot of revenue and are "good for labor," he argued."
Tariffs are defended as not being a tax and are presented as revenue-generating and beneficial for labor. Many Democrats are said to privately support tariffs but avoid public endorsement because tariffs have been labeled as belonging to a particular administration, creating political pressure to conform. Critics argue tariffs function like a tax and can revive inflationary pressures; proponents counter that cutting other taxes would offset inflationary effects. Tariffs remain part of a broader near-decade trade conflict with China and continue despite producing outcomes different from initial reciprocal-tariff promises. Tariff revenue is declining but still significant.
Read at Fortune
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