1 Answer | Add Yours
A tax on imports is a tax placed on products made in other countries and then brought into the United States. Import taxes can serve several purposes. One purpose is to protect American industries. This was used when our industries were new and struggling to compete with well-established industries in other countries. By taxing the products made in other countries, it encouraged people in our country to buy from our companies since the price was lower. This was a way to protect our new industries. Today, import taxes may be used to encourage people to buy products made in the United States.
Another purpose of an import tax was to raise money for our country. Any tax is a source of revenue. By taxing imports, our government could raise money that could be used for internal improvements, paying our debts, or supporting our military. Import taxes are an important source of revenue.
We’ve answered 319,622 questions. We can answer yours, too.Ask a question