ABSTRACT
One of the greatest tariff anomalies is the Protectionist's use of the revenue argument to justify protective tariffs. For, while the policy of Protection depends for its success upon shutting out competing goods by means of tariffs, the increase in revenue depends upon the entry of the goods in spite of the tariffs. If revenue accrues, it may be taken that the "protective" duties have failed in their primary object. If the objective of import duties is, not to protect, but to produce revenue, then it is a roundabout and unjust way of doing it. Import duties are an uneconomical method of collecting revenue, since they require staffs of officials greatly out of proportion to the amount of revenue secured. Nor does the Exchequer secure the whole income from the taxes, since a part of it is levied in the shape of enhanced prices for home products and goes into the pockets of the producer.
