YOU the American Tax Payer!
Donald Trump just raised the Consumer Prices with American Recipacal Tax INCREASE’S….
The US Government IS making money….
It will be coming from it’s own people buying imported goods….
President Trump’s extensive tariffs have already started to generate a significant amount of money for the federal government, a new source of revenue for a heavily indebted nation that American policymakers may start to rely on.
As part of his quest to reorder the global trading system, Mr. Trump has imposed steep tariffs on America’s trading partners, with the bulk of those set to go into effect on Aug. 7. Even before the latest tariffs kick in, revenue from taxes collected on imported goods has grown dramatically so far this year. Customs duties, along with some excise taxes, generated $152 billion through July, roughly double the $78 billion netted over the same time period last fiscal year, according to Treasury data….
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“The good news is that Tariffs are bringing Billions of Dollars into the USA!” Mr. Trump said on social media shortly after a weak jobs report showed signs of strain in the labor market.
Over time, analysts expect that the tariffs, if left in place, could be worth more than $2 trillion in additional revenue over the next decade. Economists overwhelmingly hope that doesn’t happen and the United States abandons the new trade barriers. But some acknowledge that such a substantial stream of revenue could end up being hard to quit.
“I think this is addictive,” said Joao Gomes, an economist at the University of Pennsylvania’s Wharton School. “I think a source of revenue is very hard to turn away from when the debt and deficit are what they are.”…
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And while income and payroll taxes remain by far the most important sources of government revenue, the combination of Mr. Trump’s tariffs and the latest Republican tax cut does, on the margin, move the United States away from taxing earnings and toward taxing goods.
Such a shift is expected to be regressive, meaning that rich Americans will fare better than poorer Americans under the change. That’s because cutting taxes on income does, in general, provide the biggest benefit to richer Americans who earn the most income. The recent Republican cut to income taxes and the social safety net is perhaps the most regressive piece of major legislation in decades.
Placing new taxes on imported products, however, is expected to raise the cost of everyday goods. Lower-income Americans spend more of their earnings on those more expensive goods, meaning the tariffs amount to larger tax increase for them compared to richer Americans.
Tariffs have begun to bleed into consumer prices, with many companies saying they will have to start raising prices as a result of added costs. And analysts expect the tariffs to weigh on the performance of the economy overall, which in turn could reduce the amount of traditional income tax revenue the government collects every year….
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Of course, the tariffs could prove unpopular, and future elected officials may want to take steps that could lower consumer prices….
Note…
Daily Kos spotlights the legal challanges to Trump/NOT Congress leveling Tariff’s…..