Economists say such a shift could widen the gap between the rich and the poor.
Literally the primary raison d’être of the modern Republican party
TL;DR: Trump administration’s plans would drastically increase the cost of everything but everyone would save 5% on their taxes. That means most people save ~$2,500/year from the tax cut but end up spending $5,000-20,000 extra on everything else (their purchases throughout the year).
The rich, on the other hand would save millions and millions on their taxes.
You’re pretty well-off if you’re paying $50k in income taxes. (Notice how they’re not planning to cut payroll taxes; those are for us ordinary folks)
If it’s just income taxes, for a single individual, you’d have to be making about 225k to pay 50k in income taxes.
How rich do you have to be to benefit from that
The reality is trickle down economics was a lie. We see that right now. Amazon doesn’t invest it’s savings in its employees, it steamrolls them for more. It’s only trickle up economics and yet they want more.
This is why things are so tight and shitty post COVID. And now he wants to double down on that.
Taxes on goods and services are nearly always, if not always, regressive.
This is the best summary I could come up with:
When former President Donald J. Trump met with House Republicans last month, he touched on a mix of policies core to his economic agenda: cutting income taxes while also significantly raising tariffs on foreign goods.
Kimberly Clausing, an economist at the Peterson Institute for International Economics, who served in the Treasury Department under President Biden, said combining tax cuts and tariffs would increase income inequality substantially and “hurt the very voters that Trump is counting on to put him in the White House.”
Still, the idea appears to be attracting more interest in the Republican Party, where even politicians who have traditionally been skeptical of tariffs have shown signs of favoring them if the generated revenue is used to help finance further tax cuts.
In a statement, Anna Kelly, a spokeswoman for the Republican National Committee, said Mr. Trump had “put America first by instituting tariffs while simultaneously keeping inflation and consumer prices low.”
“President Trump’s policies brought forward a booming economy, and he will once again lower taxes, impose tariffs on foreign producers, bring jobs back to the U.S. and put America first on Day 1,” she said.
A study by Ms. Clausing and Maurice Obstfeld, also of the Peterson Institute, found that the maximum revenue the United States could earn from tariffs would peak at about $780 billion, less than 40 percent of what income taxes currently bring in.
The original article contains 1,489 words, the summary contains 231 words. Saved 84%. I’m a bot and I’m open source!
