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Notes -
Fundamentally, because it’s easier to avoid paying a tariff than to avoid paying a corporate tax.
Why is a corporate tax a better way to raise money than a tax on, for example, jogging? Because if it’s big enough, people will simply stop jogging, and in the end the state will have no money, plus a semi-pleasurable activity will be prohibited. You are strictly worse off than before you started.
In a world where every state tried to finance itself entirely with tariffs, foreign trade and state revenue would drop to near-zero. In contrast, corporate tax world would be similar to our world.
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