Trump's tariffs run into revenue problem at the Supreme Court [View all]

Source: msn/Axios

2h


The centerpiece of President Trump's economic agenda might be scrambled because of the billions it has generated for the U.S. government.

Why it matters: Trump and his top deputies have touted how they have improved the nation's fiscal position by raising billions from tariff revenue.

What's good for the deficit outlook might be a big problem for the policies' constitutionality, however.

The big picture: In oral arguments Wednesday, Supreme Court justices — including conservatives on the bench — questioned Trump's authority to unilaterally impose what were effectively taxes.

While Congress has delegated powers to the president to deal with foreign policy, Chief Justice John Roberts said "the vehicle is imposition of taxes on Americans, and that has always been the core power of Congress."

"It's been suggested that the tariffs are responsible for significant reduction in our deficit. I would say that's raising revenue domestically," Roberts said.

Justice Sonia Sotomayor said the law that underpins the lion's share of Trump-imposed tariffs allowed the outright ban of imports. "What it doesn't say is the president can raise revenue," Sotomayor said.

The other side: Solicitor General D. John Sauer, who argued on behalf of the government, said that the tariffs' primary purpose was to regulate foreign commerce, borrowing language from the International Emergency Economic Powers Act.

"These are regulatory tariffs, they are not revenue-raising tariffs. The fact that they raise revenue is only incidental," Sauer said.

Read more: https://www.msn.com/en-us/news/politics/trumps-tariffs-run-into-revenue-problem-at-the-supreme-court/ar-AA1PWQm2

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