I would put the optimal tariff rate for generating tax revenue somewhere between 3% - 10%; the tradeoff is having a simple broad rate applied to everything versus being able to raise more revenue by having higher tariffs on some goods with more inelastic demand and less on goods with elastic demand.
Ah yes, the old Laffer curve! Brings me back to Macro when I first learned about it. Interested to hear what you think the optimal tariff rates are, if there are such a thing.
I would put the optimal tariff rate for generating tax revenue somewhere between 3% - 10%; the tradeoff is having a simple broad rate applied to everything versus being able to raise more revenue by having higher tariffs on some goods with more inelastic demand and less on goods with elastic demand.
Ah yes, the old Laffer curve! Brings me back to Macro when I first learned about it. Interested to hear what you think the optimal tariff rates are, if there are such a thing.