More than 230 years ago, one of the first acts of the First Congress in 1789 included a relatively mundane, but important, tax policy allowing a refund on excise taxes. Unfortunately, this has become a corporate subsidy for the tobacco and alcohol industries.
This, seemingly trivial, provision refunded excise taxes on imports that are later exported. This makes the U.S. a desirable intermediary port for international supply chains, as there is no penalty for shipping through American ports. It is common practice in many countries and is usually entirely uncontroversial, unless...