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Pototan

(2,245 posts)
Fri Jan 31, 2025, 03:26 AM Friday

Why Trump wants Tariffs and who pays

Donald Trump wants extreme tariffs of foreign goods. He claims the foreign nations or companies will pay. Every reputable economist knows, that in the end, the American consumer pays. Tariffs are a consumer tax on imports. But, no doubt, it does raise money. The Trump tariffs will have the result of a Value Added Tax (VAT) or a sales tax, depending on the goods being provided to the United States.

These actions will result in inflation. The goods will cost more to the consumer, one way or another. This "tax" will raise revenue and allow Trump and his allied Republicans in Congress to cut tax rates for billionaires by leveraging the tariff tax as a new source of revenue.

But make no mistake about it, the tariffs are a sales tax which is the most regressive of all taxes and the average American will take a substantial, negative hit.

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Pototan

(2,245 posts)
2. He can offset some tax cuts
Fri Jan 31, 2025, 05:26 AM
Friday

Last edited Fri Jan 31, 2025, 06:19 AM - Edit history (1)

with Tariff revenue in the tax bill. It would be the same as adding a sales tax on the American citizens. When the CBO scores the tax package, the Repukes can point to tariff revenue to pay for some of those cuts.

J_William_Ryan

(2,385 posts)
4. "What is Trump's goal? How does he benefit from this?"
Fri Jan 31, 2025, 05:52 AM
Friday

It’s part of Trump’s idiotic, wrongheaded obsession with ‘bringing back jobs.’

Because tariffs make imported goods more expensive, domestic consumers will instead buy the same goods made in the US.

The problem is that goods are being imported because they aren’t made in the US, because they’re too expensive to manufacture here. Consequently, no jobs are ‘brought back’ and consumers end up paying more.

no_hypocrisy

(49,833 posts)
5. It's more than that.
Fri Jan 31, 2025, 05:56 AM
Friday

When consumers turn to the dwindling number of products made in the U.S., they won't get a break on lower prices.

The American manufacturers will raise their own prices to match that of imported goods.

Irish_Dem

(62,489 posts)
7. So Trump's stated reason is a bold face lie. And he knows it.
Fri Jan 31, 2025, 06:21 AM
Friday

So there is another reason he is doing it.

Cosmocat

(15,083 posts)
10. That is the fable
Fri Jan 31, 2025, 07:35 AM
Friday

He knows this.

But, it the story he is selling his followers.

So, when they get challenged on it, this is what they will parrot.

lark

(24,468 posts)
12. It's the perfect profiteering scheme for him.
Fri Jan 31, 2025, 08:53 AM
Friday

Put out massive tariffs on lots of things then let the countries or companays pay him off to remove or reduce the tarriff. That's why he wants them so bad - it hurts greatly the American worker class and lines his pockets at the same time. That's a win-win as far as this ceaseless hater is concerned.

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