Trump gives Americans $72 billion tax hike with his trade war
Trump’s trade war is equivalent to one of the the largest tax hikes in a generation.
Families across the country are getting the equivalent of a $72 billion tax increase, thanks to Trump’s ill-advised trade war, according to a Thursday report from CNBC.
Using data calculated by the nonpartisan Tax Foundation, CNBC concluded that the impact of Trump’s trade war with countries including China and Canada is “equivalent to one of the largest tax increases in decades.”
“It’s certainly not the largest tax increase in history but it does rank among some of the bigger tax proposals over the last 20 years that have raised revenues,” Kyle Pomerleau, chief economist with the Tax Foundation, told CNBC.
A former Bush-era Treasury official told CNBC that a typical household making $61,000 per year will end up paying $500 to $550 more every year because of Trump’s actions. And that’s on top of any harm many families felt from the GOP tax scam.
What’s worse, when Trump talks about the trade wars and tariffs he is implementing, he blatantly lies about who is paying for it.
Trump says China and other countries pay the tariffs, but in reality, companies pass along the cost to teachers, firefighters, farmers, and anyone else who purchases goods made in those countries, say economic experts.
Trump “continues to either not understand how tariffs actually work or deliberately mislead people on how they work,” Ben White, Politico’s chief economic reporter, said in September 2018. “China doesn’t pay us anything. Importers of the products pay the tariffs and either eat the extra cost or pass it on to consumers.”
“To be clear, China is not paying a penny of tariffs,” Steve Pasierb, head of the Toy Association, said in a statement, adding that “U.S. companies and American families are, through decreased profits and higher consumer prices.”
It’s not just toys that will cost more thanks to Trump. Electronics, clothes, and shoes made in China will cost more. And Trump is also making big-ticket items cost even more.
American families now pay the equivalent of a $100 tax on washing machines. Soon, cars could cost up to $2,200 more.
Even Trump’s own economic advisers admit families across the country “will suffer” because of the trade wars.
Trump’s response to consumers paying higher prices? “Enjoy!”
The $72 billion figure is in the same ballpark of other estimates of the economic havoc Trump is wreaking upon American families. A study in March estimated Trump’s trade wars are costing American companies and consumers $3 billion every month.
When asked if she thinks Trump understands how the economy works, former Federal Reserve Chair Janet Yellen replied, “No, I do not.”
American consumers are paying a hefty price for Trump’s trade wars, and Trump may not even fully comprehend the damage he is doing.
Published with permission of The American Independent Foundation.
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