Thursday, May 16, 2019

Tariff pain is tiny compared to tax pain

The impact on the average American of Trump raising tariffs in retaliation for China's very high tariffs and unfair trade practices is minuscule compared to the impact of taxes and Federal bureaucracy on them.

We pay something like $4.5 trillion dollars in taxes each year; remember ever cent a company pays in taxes comes from what you pay for their products so that high taxes means high prices.

Trump is adding something like $30 billion to the cost of imports which is essentially nothing compared to the burden we the people bear to support the bloated and overpaid federal establishment.

Trump's tax cuts more than cover any tiny increases in costs and note that while in China they're going to have to pay more for food in America we're going to have to pay more for things we don't absolutely need; like electronics.

Further if Democrats get power the massive tax increases they're proposing will be far worse than the impact of Trump's tiny tariff increase.

Finally the tariff increases will make imports more expensive thereby incentivizing more manufacturing in the US and hence more high paying jobs for American workers.

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