Politics

. . . can we begin to talk about immigration reform?

Because the problem, as always, is spending. Federal revenue grows at a remarkably steady pace. It’s reasonably predictable. But there is no political will to control spending, and that includes President Trump, who urged Republicans against further spending cuts.

The Horseshoe Theory of Politics observes that the extremes of left and right end up meeting, and having more in common than they might have thought. And today we’ve gone full horseshoe.

If, in an ideal world, we had a zero tax rate on business income, as a consumer you would pay less, as an employee you would make more, and as an investor you would get higher returns. Sounds great, doesn’t it?

“. . . the states are just an agent of the federal government.”
-Donald Trump, Speech to the NRCC, April 8, 2025

Scott Sumner kindly references IPI's recent TradeByte on Congress' impotent response to Trump's tariffs.

When did it become okay for a president to break treaties lawfully passed by Congress?

The president is chosen by the states to administer for a limited time (thank God) the Office of the President, the head of the Executive Branch. He doesn’t run the country, control the economy, create jobs, set the price of eggs or the rate of inflation, determine the course of the nation, or serve as the Tribune of the People or the Soul of the Nation. At least that’s what the Constitution says.

Supplier: "Hey, John, we’ve got your order in, but I’m going to have to send you a replacement invoice."

John: "Why?"

Supplier: "Well, I have to add a 25% surcharge to the order."

Because tariffs, by design, raise the price of imported goods, tariffs are paid by U.S. consumers and businesses. It’s not inflation, since inflation is about the money supply, but it’s a price increase nonetheless—call it “tarifflation.”