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What exactly is a "revenue tariff"? Examples, please.?


What exactly is a "revenue tariff"? Examples, please.?

A tariff in this case is a tax on imports. There are generally 2 reasons for taxes on imports.

The first is to get the funds to run the government. In the 1800s the US federal government was funded mostly by the revenue from tariffs, hence a "revenue tariff".

The second reason for a tax on imports is to raise the price of certain goods so that imported goods cost more than they otherwise would, allowing local companies to have a price advantage (or less of a disadvantage) compared to prices without a tariff. This is called a "protective tariff" because it "protects" the local companies from competition.

Generally an import tax.

http://www.infoplease.com/dictionary/rev...

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