Trump Loves Big Taxes
If you love big tariffs, you love big taxes, because that’s what tariffs are.
‘The $72 billion in revenue from all the president’s tariffs ranks as the largest tax increase as a percent of GDP since 1993.’ https://t.co/NtGyaUoptq
— Jesse Felder (@jessefelder) May 17, 2019
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
The middle class tax base is broke and shrinking rapidly. Tariffs are just about the stupidest thing economically one could do now and will further pressure them. The political will does not exist anywhere in Washington to actually cut the friends and family jobs and really go thru the federal budget. We have been on a wartime footing for decades now and instead of having strong progressive taxes to pay for this like after WW2 we’ve been monetizing this on the backs of the middle class and poor for decades and causing spectacular asset inflation. One reaps what they sow. Now we have political instability because of the wealth inequality and the unfairness of the system and it’s about to get much much worse.
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.
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.
Trump makes lots of promises and noise… It covers up his israel first policy.
“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.
Tariffs reward American wealth producers.
Tariffs punish American wealth destroyers.
The higher the tariffs the wealthier America becomes.
President Trump is an economic genius.
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.
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.
Did I mention that fusarium blight is taking 25% of the Chinese wheat crop this year?
President Trump knows the art of war. China will be scorched earth before he finishes with them.
— A new pest that threatens key agricultural commodities is spreading through China as the nation is reeling from an African swine fever epidemic that may wipe out hundreds of millions of hogs.
The new pest is called the fall armyworm, a moth native to Central America that feeds voraciously on many commodity crops while in its caterpillar phase.
The pest “has no natural predators in China and its presence may result in lower production and crop quality,” the U.S. Department of Agriculture’s Foreign Agricultural Service said in an advisory. “Experts report that there is a high probability that the pest will spread across all of China’s grain production area within the next 12 months.”
The moth has arrived as China is losing a large percentage of its food supply to the rapid spread of African swine fever, which has spread to hogs throughout the country.
Ok, how does starving a quarter of the world’s population benefit the US?
China and Viet Nam are not a wise place to manufacture widgets.
I have learned my lesson. I will do a bit of research before I respond again to your alarmist posts. Here’s what the UN Food and Agricultural Organization have to say about the Fall Army Worm (FAW). Turns out it is native to the Americas tropic and subtropic regions.
In the Americas, farmers have been managing FAW in their crops for many centuries and researches have been studying it for decades
Sustainable management practices that are used in the Americas need to be to be adapted to countries’ socio-economic-environmental contexts
I will ask you the question I asked the other day. If tariffs are such a powerful and successful way to boost our economy and win in the world economy, why have they not been used by any president since Eisenhower?
President Trump has one tool.. bullying….
Too bad that the Trumptards still think China is paying all these tariffs! And trade war is easy to win!
Before today, goods sent to the United States from China, a Tariff to be paid by China is 2 1/2%. But goods sent to China from the United States, a tariff to be paid by the USA is 25%. By raising tariffs to 25%, all Trump did was make it fair. Who the heck ever made and/or supported that original deal should be convicted of a crime. It’s not rocket science.
It’s not about facts or logic with these guys, although I applaud you for your patience with them.
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.
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.
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!
What utter nonsense, and it received a low information voter like, as well.
Taxes For Revenue Are Obsolete, written in 1946 by Beardsley Ruml, the former Chairman of the Federal Reserve Bank of New York.
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Tax Cut – Tax Hike Difference
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Duh! Who can best afford lobbyists, again?