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Trump's Tariffs Cost Taxpayers More Than Largest Tax Increase in 26 Years

Discussion in 'Latest Political News and Current Events' started by llovejim, May 17, 2019.

  1. llovejim

    llovejim Current Champion

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    If the money these tariffs cost taxpayers were in the form of a tax hike, it would be the largest tax hike since Clinton increased taxes for the rich and big corporations that balanced the budget and even created a surplus during the 90's....but this tax increase IS MAINLY ON MIDDLE CLASS AND WORKING POOR CONSUMERS, NOT THE RICHEST 5%!!
    • The combined $72 billion in revenue from all the president's tariffs ranks as one of the biggest tax increases since 1993, according to CNBC analysis of data from the Treasury Department.
    • 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.
    • But there are key differences between a tax cut and tariffs.
    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.

    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.

    "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,'' said Kyle Pomerleau, chief economist with the Tax Foundation.

    Key differences

    Of course, there are key differences between a tax cut and tariffs.

    Trump says Chinese companies pay the tariffs, but most economists see them being borne by U.S. businesses and consumers. That is, they are essentially a tax increase. 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.

    Kent Smetters of the Penn-Wharton Budget Model and a former Treasury official during the Bush administration, estimates that the tariff increase will cost the median U.S. household with earnings of $61,000 about $500 to $550 a year. It's the equivalent, he said, of raising the Social Security retirement tax by 1 percentage point to 11.6%.

    Such a large revenue measure, according to Pomerleau, if it were a tax, would have been subject to considerable economic analysis from the Congressional Budget Office or the Joint Committee on Taxation for the potential effects on growth, inflation and jobs. No such analysis has been offered or is believed to have been conducted by the administration regarding the current tariffs.

    And the revenue measure is by far the largest enacted without congressional approval. Congress, in a series of laws, has ceded to the president vast powers to levy tariffs.

    https://www.yahoo.com/finance/news/trump-apos-tariffs-equivalent-one-125537294.html
     
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  2. Nutty Cortez

    Nutty Cortez Woot Woot !!!!!!

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    Wait, a leftist is now complaining about people keeping less of their money ??!! :eek:

    Why, this never happens when they talk about tax increases.

    China had a 10% tariff on all U.S. goods while our tariff on Chinese goods was about 4%.
    Start with the basic facts: The average tariff that we imposed on China when Trump entered the White House was about 4%. China’s tariffs on us were about 10%. Even when including the 10% tariff that Trump first imposed on $200 billion worth of Chinese imports in 2018, our tariffs were still lower than theirs.o_O

    The playing field is not level and is especially tilted against us given that Beijing’s non-tariff barriers in China can make it damn expensive to do business there. We have an open market competing against the world’s 2nd largest economy whose doors are slammed shut. And this has been accepted by American leadership for decades.

    Change is tough for some in my very dumb base.
     
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  3. llovejim

    llovejim Current Champion

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    QUOTE="Nutty Cortez, post: 2423868, member: 26843"]Wait, a leftist is now complaining about people keeping less of their money ??!! :eek:(Really, really big, gigantic difference- these tariffs come out of taxpayer's pockets like a tax increase, but they do not go to fund any federal projects like taxes do. they go to the companies that have to pay more for chinese goods to cover their costs...get it? why would you compare just paying more for everyday goods that do not benefit the country in any way to paying taxes that fund the military, FEMA, the EPA, health care, education and other good causes? do you really think they are similar?)

    Why, this never happens when they talk about tax increases. (because they are not at all similar, silly!! no wonder you are a fake woman pretending to be smart enough to be a democrat!!)

    China had a 10% tariff on all U.S. goods while our tariff on Chinese goods was about 4%.
    Start with the basic facts: The average tariff that we imposed on China when Trump entered the White House was about 4%. China’s tariffs on us were about 10%. Even when including the 10% tariff that Trump first imposed on $200 billion worth of Chinese imports in 2018, our tariffs were still lower than theirs.o_O (i assume wherever you quoted that from is correct. there is some truth in what Trump says...the question is, doesn't this attempt to change it actually cost taxpayers more than it is worth?)

    The playing field is not level and is especially tilted against us given that Beijing’s non-tariff barriers in China can make it damn expensive to do business there. (if that is true, why does Trump and Ivanka have almost all their products manufactured there despite claiming "America First" and his voters believing it?)

    We have an open market competing against the world’s 2nd largest economy whose doors are slammed shut. And this has been accepted by American leadership for decades. (and by trump and ivanka having all their cruddy products produced there, too.)

    Change is tough for some in my very dumb base. (there ya go pretending to be a woman smart enough to be a democrat again...what is wrong with you? in 50,000 words or less?)[/QUOTE]

    trump china hat.

    ivanka china.
     
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  4. Nutty Cortez

    Nutty Cortez Woot Woot !!!!!!

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    [/QUOTE]


    You lost on the first paragraph. Especially when you NAME the thread:

    Trump's Tariffs Cost Taxpayers More Than Largest Tax Increase in 26 Years.

    Then say:

    Really, really big, gigantic difference- these tariffs come out of taxpayer's pockets like a tax increase.

    (Psssst Jim thinks tax dollars are never wasted) lol

    (I guess I'm the only one that didn't ignore crazy Jim- Now I see why)

    Bye Jim ! Signed- Everyone.
     
  5. JuliefromOhio

    JuliefromOhio Senator Supporting Member

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    Republican senators are very displeased with Trump's dumb trade war, but they will say nothing....cowards that they are.
     
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  6. afella

    afella Mayor

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    China won't bend. Xi doesnt have to worry about an election. Trump does. At some point trump will have to bend over and take it in the....... I do believe he will get a better deal, but the cost will be high.

    If a person thinks that forcing the middle class even lower on the totem pole, farmers in particular, is the correct thing to do. Then it's a win. Most people dont see it as such, so it will be a loss.
     
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  7. JuliefromOhio

    JuliefromOhio Senator Supporting Member

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  8. PhilFish

    PhilFish Administrator Staff Member

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    Buy domestic
     
  9. kaz

    kaz Small l libertarian

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    So Jim, what converted you? I am a free trader, always have been. But you weren't one until the day Trump took office and you won't be again the day he leaves office.

    Now that you're temporarily enlightened, how would you suggest we could make this permanent? How can we keep you a free trader when Trump is gone? And how can we persuade other sudden leftist free traders to stay for free trade when Trump leaves office?

    Any thoughts?
     
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  10. JuliefromOhio

    JuliefromOhio Senator Supporting Member

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    [​IMG]
     
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  11. SoccerMom

    SoccerMom Mayor

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    This story is pure speculation, it is nothing but estimates and predictions. No facts. Remember, that 25% tariff is just a threat, it hasn't been imposed.
    China has been ripping us off and stealing American jobs and consumers money for years. Trump is fixing that.
    I've said it a dozen times: Democrats are economic morons.
     
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  12. Winston

    Winston Do you feel lucky, Punk

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    Do the poor that are now off welfare and working in American factories care?
     
  13. SoccerMom

    SoccerMom Mayor

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    There are zero 25% tariffs. That is merely a threat at this point. What the Democrats never mention is that WalMart is perfectly free to, and able to, purchase the widget from a country that isn't imposing tariffs on goods we export to them, like China is doing to us. That means more American manufacturing jobs, right here. So why aren't the Democrats in favor of more jobs? Several reasons: if Americans have good jobs, they don't need Democrats. The Democrats need immigrants in low paying jobs for their voter base. Democrats are economic morons. They do not know how to create widespread prosperity.
     
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  14. PhilFish

    PhilFish Administrator Staff Member

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    One also simply doesn't have to buy or hold off buying the product that is tarriffed
     
  15. Winston

    Winston Do you feel lucky, Punk

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    A lot of companies will fold if Chinese parts are removed from the market. This will happen far faster then any USA factory will open. Furthermore no USA factories will open because once the tarrifs are lifted Chinese goods flood the market again

    Trade wars do not have winners
     
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  16. Winston

    Winston Do you feel lucky, Punk

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    From a consumer standpoint, but these tarrifs will cost manufacturers billions in part cost, so they will hold off
     
  17. llovejim

    llovejim Current Champion

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    says the clown who thinks a fetus without a brain is alive. read the facts from economic experts...why do you think a trump voter knows anything, much less anything about economics, much less even a fraction as much as real experts whose data that article is based on? WHY FREAKING COMMENT IF YOU HAVE NOT READ HOW REAL EXPERTS DETERMINED THIS, ESPECIALLY WHEN ALL YOU SAY IS "NO, IT ISN'T!!" like a third grader. no facts, no rebuttal, just plain ignorance. as usual-

    have someone you trust read this to you then take a couple of days trying to explain it to you-

    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.

    "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,'' said Kyle Pomerleau, chief economist with the Tax Foundation.

    Key differences

    Of course, there are key differences between a tax cut and tariffs.

    Trump says Chinese companies pay the tariffs, but most economists see them being borne by U.S. businesses and consumers. That is, they are essentially a tax increase.

    Kent Smetters of the Penn-Wharton Budget Model and a former Treasury official during the Bush administration, estimates that the tariff increase will cost the median U.S. household with earnings of $61,000 about $500 to $550 a year. It's the equivalent, he said, of raising the Social Security retirement tax by 1 percentage point to 11.6%.

    Such a large revenue measure, according to Pomerleau, if it were a tax, would have been subject to considerable economic analysis from the Congressional Budget Office or the Joint Committee on Taxation for the potential effects on growth, inflation and jobs. No such analysis has been offered or is believed to have been conducted by the administration regarding the current tariffs.

    And the revenue measure is by far the largest enacted without congressional approval. Congress, in a series of laws, has ceded to the president vast powers to levy tariffs.
     
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  18. PhilFish

    PhilFish Administrator Staff Member

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    Interesting premise.. so an organism without a brain is not alive?
     
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  19. llovejim

    llovejim Current Champion

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    what you don't understand, along with most 3 syllable words, is Walmart would already be doing business with other countries for cheap goods IF THEY WANTED TO OR WERE ABLE TO...DUH....geez, what a brilliant statement- Walmart could just go get a huge portion of the merchandise they sell made in China or made with some Chinese parts from somebody else- IF THEY COULD DO IT NOW, AT A LOWER PRICE, THEY WOULD NOW...nobody wants to do so much business with China, it is just they produce so much of the world's cheap stuff and parts for other countries cheap stuff. duh. it is kinda like after WW2 and we were the only country making any cars, or anything at all, due to Europe and Russia and Japan being devastated by the war while we were never attacked on the mainland.
     
  20. llovejim

    llovejim Current Champion

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    a human, most definitely. even trump voters.
     

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