Trump’s tariffs are equivalent to one of the largest tax increases in decades

President Donald Trump, having championed one of the larger tax cuts in recent years, has now enacted tariffs equivalent to one of the largest tax increases in decades.

A CNBC analysis of data from the Treasury Department ranks the combined $72 billion in revenue from all the president’s tariffs as one of the biggest tax increases since 1993. In fact, the tariff revenue ranks as the largest increase as a percent of GDP since 1993 when compared with the first year of all the revenue measures enacted since then, according to the data.

Only the revenue raised in the fourth year of the Affordable Care Act is greater, but not by much.

The nonpartisan Tax Foundation estimates all the tariffs enacted by the president, including the latest increase from 10% to 25% on $200 billion on Chinese goods, will raise $72 billion in revenue, equal to 0.34% of U.S. gross domestic product. Revenue raised in the first year of the 1993 budget and reconciliation act equaled 0.36% of GDP.

cnbc
The far left policies of your fearless leader of tax and spend continue unabated. Trump doesn't seem to understand how tariffs work. All the tariffs are another tax you the consumer have to pay. When Trump brags about making $70 billion from China because of tariffs, he is incorrect he is making this money from US business and consumers.

a reply to: LDragonFire

I am sure before actual analysis has been done, this will be declared fake news by the ATS trump department to save us all from having to read a negative about the great man......

originally posted by: UpIsNowDown
a reply to: LDragonFire

I am sure before actual analysis has been done, this will be declared fake news by the ATS trump department to save us all from having to read a negative about the great man......

Fox business agrees with my op
fox businessyoutube

a reply to: LDragonFire

Your source does not even say what you claim.

Over time, however, consumers and businesses can reduce this tax hit by substituting away from high-priced goods and Chinese production. Some of that production could come back to the U.S. or simply move to other countries.

but most economists see them being borne by U.S. businesses and consumers

So it's likely a portion of it will be passed on to consumers. Your source simply assumes that portion is 100%. The problem is if China does that, the first part of my quote comes into effect.

a reply to: LDragonFire

So we should continue with the massive trade deficits with China?

a reply to: LDragonFire

So you're obviously for it because your ideology supports higher taxes.

You "Team Trump" now?

Yes but it’s a tax on consumption; so it’s one that illegal immigrants are paying—not just US citizens....

It is revenue that was previously being exported directly to China. Now it’s being kept at home, in the coffers of the treasury

I'm no economist but iv'e heard this ALOT. That trump is misunderstanding terriffs and is actually hurting the U.S.

I'd like to hear a counter-argument to the OP.

Yet as we pointed out last December, Trump's tariff claims have a bigger flaw. In 2018, the U.S. government committed to paying American farmers $9.6 billion to offset their losses from Chinese tariff retaliation. This is about $1 billion more than it took in all year from Trump’s China tariffs. Tariffs, therefore, ending up not just harming American companies and consumers, but costing the government money. More money left “U.S. coffers” to offset farm losses than came into them from U.S. importers.

www.cfr.org...

The other day my niece told me that planting more trees wasn't an acceptable solution to global warming because the trees would displace people.

This is like that.

originally posted by: watchitburn
a reply to: LDragonFire

So we should continue with the massive trade deficits with China?

Well, I think the question is wether Trump truely understands what he is doing. Even if his intentions are good. Many have been pointing out that Trump's words show a misrepresentation of reality and not a full grasp of how terriffs work.

originally posted by: DBCowboy
a reply to: LDragonFire

So you're obviously for it because your ideology supports higher taxes.

You "Team Trump" now?

A very shallow reply... Immediately dragging one to identity politics. Shame...

a reply to: SilentSaturn

I'm a shallow person, sue me.

So instead of acting pompous, care to explain why you want unfair trade?

Why are you so anti-American?

originally posted by: OccamsRazor04
So it's likely a portion of it will be passed on to consumers. Your source simply assumes that portion is 100%.

You're also assuming that many of these industries are able to come back.

You seem to have left out a word “ temporary “.

This is my favorite example of unfair trade practices .

When this began US import of automobiles had a 2.5% tax/tariff .

China’s import duty on automobiles was 25% plus a 17% VAT tax.

Those numbers speak for theirselves.

I want fair trade for our kids and grandkids. The current temporary price hikes don’t bother me in the least .

originally posted by: Graysen
Yes but it’s a tax on consumption; so it’s one that illegal immigrants are paying—not just US citizens....

It is revenue that was previously being exported directly to China. Now it’s being kept at home, in the coffers of the treasury

Right...

130 Percent of Trump’s China-Tariff Revenue Is Now Going to Angry Farmers

Looks like my 180acres in Texas will allow me to buy something nice. China is now getting their soybeans from Brazil. That market isn't coming back!

www.cfr.org...

originally posted by: AugustusMasonicus

originally posted by: OccamsRazor04
So it's likely a portion of it will be passed on to consumers. Your source simply assumes that portion is 100%.

You're also assuming that many of these industries are able to come back.

No, I am assuming they can also move to another country.

originally posted by: OccamsRazor04

No, I am assuming they can also move to another country.

That still doesn't help bring anything back here.

originally posted by: SilentSaturn

originally posted by: watchitburn
a reply to: LDragonFire

So we should continue with the massive trade deficits with China?

Well, I think the question is wether Trump truely understands what he is doing. Even if his intentions are good. Many have been pointing out that Trump's words show a misrepresentation of reality and not a full grasp of how terriffs work.

You need to update your perspective and avoid reading fake news.

The POTUS has advisors and doesn't dictate alone. We aren't a monarch and contrary to what you have read, liberal media, to include FOX, will have a biased perspective on anything Trump related.

Tariffs hurt all, its best to understand the analogy, Like a bad bandaid, it's best to rip it off to the discomfort of minor pain and HEAL.
We are going to pay a higher price, but this is needed for markets to re adjust.
Your reaction as well as others is indicative of a populace who have forgotten HARD WORK.

a reply to: Arnie123

I liken it to chemo.

It's hard to endure, but the cancer (unfair tariffs) needs to be eliminated.

I support these tariffs as a result of a complacent body of government unable to budge on policy regarding border security.

I find it very comical that people SUDDENLY CARE, that now all hell will break loose.

But you people sat by for how many years?

And than Trump becomes POTUS and now you all care?

Let this be known, all you "Well this and that" falls on deaf ears.

Some of you personally have been advocating for change and though Tariffs aren't your method, you have to understand that change wasn't happening at any pace either and so when you have an American POTUS for the American People, he will impose what he needs to bring spotlight to the issue.

I'll gladly pay more and happily consume all the fear mongering being projected 😊

If you're whining, who cares, deal with it.

That includes are FARMERS.