Trump Loves Collecting Taxes: Tariffs Equate to Largest Tax Increase Since 1993

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Trump says he loves collecting tariffs. What he really means is he loves to collect taxes.

Trump Loves Big Taxes

If you love big tariffs, you love big taxes, because that's what tariffs are.

Admitting the Obvious

Even Kudlow Admits the Obvious: Trump is Wrong

Tax Cut - Tax Hike Difference

  • Trump's tax cuts went almost entirely to the wealthy.
  • Trump's tax hikes went to all consumers via higher prices.

Currency War

Meanwhile, Trump Asks the Fed Start a Currency War With China

And to top it off, consider the Fed's lie of the day: "Low Inflation is One of the Major Challenges of Our Time"

Yet, economists cannot figure out why the middle class is shrinking.

Go figure.

Mike "Mish" Shedlock

Comments (36)
No. 1-18
Stuki
Stuki

" Tax Cut - Tax Hike Difference

Trump's tax cuts went almost entirely to the wealthy.
Trump's tax hikes went to all consumers via higher prices.

"

Duh! Who can best afford lobbyists, again?

lol
lol

DC is in dire financial straits, A collapsing tax base might trigger a state of emergency declaration!Already seeing local gov't layoffs along with soaring increases in taxes,fee increases.Not only will tariffs increase but look for an emergency tax increase fast tracked into law by summer......and still won't be enough....not even close!

HubbaBuba
HubbaBuba

In the fullness of time getting over the tariffs will also ramp back up the deficit. (Already interest expense alone is roughly TOTAL defense spending.) Actually, it'll probably play out as a bad 1, 2 punch. It could be a bit like the OPEC oil embargo of the late '70s. Inflation ramps up due to the huge price increases playing out, then (somehow) the tariffs roll back and Fed borrowing explodes all the more. And with those higher rates AND ramping back up deficits deficit interest expense explodes even more.

Curious-Cat
Curious-Cat

Mish - I agree he's the master of the tax increase. And no one is in favor of tax increases. (What ever happened to Grover Norquist?) Yet it's six to five and pick 'em whether he will get a second term.

Too bad all the "decent" republicans in Congress are too afraid of being primaried to stand up for traditional republican values.

thimk
thimk

BIG TARIFFS bad, must stop now ! @realThimk

Augustthegreat
Augustthegreat

Too bad that the Trumptards still think China is paying all these tariffs! And trade war is easy to win!

Menaquinone
Menaquinone

President Trump knows the art of war. China will be scorched earth before he finishes with them.

Sechel
Sechel

Trump indeed brags about lowering the income tax rate yet fails to see they hypocricy of raising taxes via tariffs, which are simply a consumption tax. It's not even a tax on imports since domestic producers largely raise their prices as a result of the tariff.

Realist
Realist

Let’s see if we can count the lies:

  1. China is paying tens of billions of tariffs – No, but American businesses and consumers are
  2. The tariffs are reducing the deficit – No, the deficit is still increasing every day
  3. Tariffs will force businesses to leave China and manufacture in the US – No, they may leave China, but they will move to a similarly low cost country such as Vietnam
  4. Tariffs will force US trading partners into signing trade deals that benefit the US, while hurting the trade partner – No, as evidence I give you the new NAFTA, which Mexico and Canada refused to sign until the steel and aluminum tariffs were removed. Now that Trump has backed down on those tariffs, the new agreement ”may” be passed by all three countries. It is almost identical to the previous agreement. All that bluster and bravado for nothing.
  5. Every other country in the world is taking advantage of the US – No, other developed countries like Canada and Euro Countries and Japan have pretty even trade with the US. Developing countries with low wage rates have an advantage over all developed countries because of their low wages.
  6. All previous Presidents did a horrible job on trade agreements – No, and this is the biggest lie of all. I would say all previous Presidents did a far better job than Trump. Because Trump is doing an absolutely terrible job, hurting American consumers and businesses, and getting nothing in return

Worst President Ever.

Menaquinone
Menaquinone

Did I mention that fusarium blight is taking 25% of the Chinese wheat crop this year?

Maximus_Minimus
Maximus_Minimus

Let's be clear; tariffs are applied on the price of good as they enter the country. A pair of jeans as an example, cost 1-2$ to make in an Chinese factory, so tariffs will add at most 1$ to the price. These will retail in the range of 50-100$ dollars. So how will the consumers pay through their noses for tariffs? If Trump's only preoccupation was China, the world would be a much better place.

lol
lol

Without overt QE,the treasury will miss at least one,maybe 2 interest payments this year,tax revenue dropping like a rock and without massive increase in fed money printing or maybe get a title loan on Trump's limo,treasury will not be able to keep up the payments on that 23 trillion dollar nut.

Menaquinone
Menaquinone

Tariffs reward American wealth producers. Tariffs punish American wealth destroyers. The higher the tariffs the wealthier America becomes. President Trump is an economic genius.

RonJ
RonJ

"Yet, economists cannot figure out why the middle class is shrinking."

The closure of 60,000 American factories. There was a story the other day about the suicide rate being up 24% in Ohio due to the de-industrialization in the state.

Greggg
Greggg

Trump makes lots of promises and noise... It covers up his israel first policy.

Carl_R
Carl_R

If the tariffs stay in effect (which they won't), how many dollars will be raised? How many less dollars are raised as a result of the tax cut? It's impossible to compare one with the other without some information on the magnitude of both, information that I don't have. That being said, all things being equal, I favor a consumption tax rather than an income tax. You tax what you want less of. Consumption, in general, is not productive, while income is.

Sechel
Sechel

nobody is saying the obvious. that trump is just engaged in empty rhetoric. why would he love collecting tarriffs and yet not love collecting income tax revenue?

Aaaal
Aaaal

I picture Trumpty Dumpty as a child in a room full of levers & buttons. Impetuous & lacking self control he runs about the room pushing said buttons & pulling all the levers. This is how he runs his presidency.