Now, higher taxes supposedly are good news??

I had hoped that by now, everyone in America knew that the import tariffs America levies are paid for by Americans.

Tariffs are a double whammy:

1. Sales taxes, that raise the prices of goods and services,
2. while removing growth dollars from the economy.

Alas, the word has not reached Epoch Times reporter Tom Ozimek, the author of the following article:

Tariff Windfall Drives Surprise $27 Billion US Budget Surplus in June A record-high tariff haul in June fueled a rare budget surplus—and set the stage for even bigger collections ahead.

New data from the Treasury Department show that surging tariff revenues in June helped the U.S. government post an unexpected budget surplus of $27 billion, offering a rare fiscal bright spot amid persistently high federal deficits and suggesting that President Donald Trump’s tariff policies are becoming a significant source of government revenue.

A question for Mr. Ozimek: What if the federal government announced it was doubling the FICA tax and income tax rates while cutting Medicare and Social Security payments to $0? Would you term that a “rare fiscal bright spot”?

Now that would give the government a huge budget surplus. Is that also a “rare fiscal bright spot?”

I know President Trump will claim so, but will you, Mr. Ozemik, be fooled?

And by the way, federal deficits are income for the economy. Deficits provide the growth dollars the American people rely on.

After running a $316 billion deficit in May, the government recorded a surplus of just over $27 billion last month, according to data released on July 11 by the Treasury Department.

The tariff windfall helped narrow the fiscal year-to-date deficit to $1.34 trillion—a slight 1 percent improvement from the same period last year. By contrast, June 2024 saw a $71 billion deficit.

For you benighted souls who are happy when our Monetarily Sovereign government– a government that never can run short of its own sovereign currency — takes dollars from your pockets, the following message should be enlightening:

The federal government does not need your money, does not use your money, and in fact, destroys all the money you send it — and import duties fall into that category.

A key driver of the improved balance was a record-breaking surge in customs duties. The Treasury data released on Friday show that tariff collections soared to $27 billion in June alone, pushing total tariff revenues since October to $108 billion—the highest ever recorded for the first nine months of a fiscal year.

June’s haul marked a significant jump from May’s prior record of $22 billion and was about 93 percent higher than the $56 billion collected during the same nine-month span of the previous year.

Translation: A key driver of the economy’s loss was a record-breaking surge in customs duties extracted from the pockets of the American people.

The Treasury data released on Friday show that tariff collections took $27 billion from the economy in June alone, pushing total tariff dollars lost from the economy since October to $108 billion—the highest ever recorded for the first nine months of a fiscal year.

June’s economic deficit marked a significant jump from May’s prior record loss of $22 billion and was about 93 percent higher than the $56 billion taken out of the economy during the same nine-month span of the previous year.

(Note: Gross Domestic Product, the usual measure of the economy = Federal Spending + Non-federal Spending + Net Exports. When you take billions of dollars from the economy, you literally take those dollars from the American people.

(The Federal government is not the American people. It creates new dollars, and does not use tax dollars) to pay its bills.

If you don’t like the word “deficit’” remember this: Federal surpluses are the economy’s deficits. Federal income is the economy’s dollars destroyed.)

So far in July, customs duties have added another $2.4 billion to federal coffers, according to daily Treasury figures.

Translation: So far in July, customs duties have taken another $2.4 billion from the economy while adding not one penny to the Monetarily Sovereign federal government’s infinite ability to pay its bills, according to daily Treasury figures.

(The Federal government has no “coffers.” It has infinite dollars.) That is why there is no measure of how much money the federal government has. It creates dollars at will by passing laws.

Treasury Secretary Scott Bessent has predicted even higher tariff revenues in the months ahead.

Translation: Treasury Secretary Scott Bessent has predicted even higher economic losses in the months ahead.

Speaking at a July 8 White House Cabinet meeting, he said the United States is on track to collect $300 billion by the end of calendar year 2025, noting that the “major” tariffs imposed under the Trump administration did not start until the second quarter.

Translation: Speaking at a July 8 White House Cabinet meeting, he said the United States is on track to take $300 billion from the economy by the end of calendar year 2025, noting that the “major” economic deficits imposed under the Trump administration did not start until the second quarter.

Since returning to the White House for a second term, Trump has imposed 10 percent universal tariffs on trading partners, along with reciprocal tariffs announced in April on a number of nations, depending on the trade barriers they have with the United States.

Translation: Since returning to the White House for a second term, Trump has imposed 10 percent universal tariffs on trading partners — all of which are paid by American consumers — along with reciprocal tariffs announced in April on a number of nations — also paid by American consumers, depending on the trade barriers they have with the United States.

(Those trade barriers with the United States also are paid by American consumers in the form of higher prices. That’s called “inflation.”

Trump has said the higher duties will substantially boost government revenue.

Translation: Donald Trump, the man who has gone bankrupt six times and needed to ask his daddy to bail him out, doesn’t mention that “higher government revenues” are a net loss for the American public.

They don’t help the government, which has the infinite ability to create its sovereign currency and has no need for, or use of, “revenues.”

(Monetarily non-sovereign state and local governments do need and use revenues. It’s important for economics writers to understand the fundamental differences between a Monetarily Sovereign government and a monetarily non-sovereign government.)

“The big money will start coming in on Aug. 1st. I think it was made clear today by the letters that were sent out yesterday and today,” he said during the Cabinet meeting.

Translation: “The big money will start leaving our economy on Aug. 1st. Because Gross Domestic Product growth requires money supply growth, this will likely lead to a significant recession in the last quarter of 2025. Unless these misguided tariffs are revoked, a depression is expected to begin in late 2026 and continue to worsen after that until Trump is removed from office. 

Trump always has made it clear that whatever bad happens is Barack Obama’s, Joe Biden’s, and/or Hillary Clinton’s fault, or that he knew nothing about it — (also, he never met the latest woman to accuse him or Epstein.+

Bessent also cited a June 4 report from the Congressional Budget Office projecting that tariff revenues could total $2.8 trillion over the next decade—a figure he said the administration believes is understated.

Translation: Bessent also cited a June 4 report from the Congressional Budget Office projecting that economic losses could total $2.8 trillion over the next decade—a figure he said the administration believes is understated.

Trump said he won’t extend the Aug. 1 deadline for countries to start paying reciprocal tariffs, signaling a firm stance after earlier suggesting flexibility for nations offering trade concessions.

 Trump noted that the tariffs might be lowered if countries open their markets and reduce non-tariff barriers, emphasizing that persistent trade deficits pose “a major threat” to U.S. economic and national security.

Translation: Trump noted that the tariffs might be lowered if countries open their markets and reduce non-tariff barriers, failing to mention that persistent tariffs pose “a major threat” to U.S. economic and national security.

The president has also announced that Canada will face 35 percent tariffs starting on Aug. 1.

Translation: The president has also announced that American buyers will pay 35 percent more for Canadian imports starting on Aug. 1.

Will someone please contact Tom Ozimek and tell him I would be glad to educate him on economics before he writes another misleading article. Please.

Thank you.

Rodger Malcolm Mitchell

Monetary Sovereignty

Twitter: @rodgermitchell

Search #monetarysovereignty

Facebook: Rodger Malcolm Mitchell;

MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell;

https://www.academia.edu/

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A Government’s Sole Purpose is to Improve and Protect The People’s Lives.

MONETARY SOVEREIGNTY