Thomas Oatway | Doubling Down on Tariffs
Oct 29, 2024
Donald Trump is doubling down on tariffs as what he insists is a big tax paid by countries who export to the U.S. When asked a question on his child care policy, he insisted that child care is an insignificant expense relative to the “huge” taxes that will be collected by his new tariffs on imported goods. That is flatly false. In 2018 it was predicted that his tariff on Chinese goods would collect $32 billion, an insignificant amount compared to the $2.4 trillion of U.S. tax collections.
Tariffs are paid not by the exporting country, but by the importing customer, such as Costco. Yes, tax revenues are collected, but they are paid by ordinary citizens who purchase the inflated cost of the product. Increased tariffs would represent a huge tax increase for middle-class and lower-income Americans. If tax reduction is enacted by the Congress, as Trump insists he plans, it will be in the form of another windfall to the rich and corporate interests, who benefited primarily from his 2017 tax reduction legislation.
It is surprising that nobody has informed Trump on exactly what a tariff is, or does. It may also be that he has so little confidence that his loyal MAGA supporters will understand his tariff plan that he has no excuse for not continuing his false economic message. Either way, this does not say much for anyone who would vote for Trump to be our 47th president.
Thomas Oatway
Valencia
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