Is A Higher Import Tariff the Solution to Getting the U.S. Out of Debt?

The deficit has always been popular topic, however in recent weeks it seems to be discussed more frequently and in-depth. In an article posted by Paul Solman titled, "Could a Higher Import Tariff Pay for Medicare and Get the U.S. Out of Debt" a man by the name of Joel Soewell shares his "simple" solution to correcting the deficit. Soewell explains that if taxes on goods imported to the U.S. were raised by 15 percent, the tax revenue alone could generate enough money to bring the U.S. out of debt. He feels this tariff increase would stimulate domestic manufacturing growth and bring money into the government without increasing the tax on income of any "class".

While Soewell makes some good points, I do not feel his solution was entirely thought out. Increasing import tariffs to increase revenue and bring the U.S. out of debt sounds like an excellent solution for the present day. However, once we begin to examine the possible future/long term effects, this solution becomes less and less appealing. Paul Solman makes an excellent point in the article and it should be the only point she needs to make; once the united states raises the import tariff, the amount of goods that are imported will significantly decrease. Many of our top trading partners would cease trading with us, and most likely create a retaliatory tariff, increasing the price and making it harder for the united states to export goods. This "simple solution" could potentially have an opposite effect and increase the deficit.

Another potential effect of increasing import tariffs that needs to be examined is how these high tariffs will effect domestic prices. Imported goods would have to be priced significantly higher to make up for the extra tax. Also imported raw material prices would increase, which as a direct effect would raise the prices for U.S. consumers.

While increasing import tariffs seems like a "no brainer" solution. One should truly examine and consider the drastic long term effects this could have on our country, economy, and especially our current debt crisis.