Higher taxation by the left is a message. It says you are an idiot. Too stupid to know how to spend the wages you earn. And since you can’t do it right, you are forcing them to take your money and do the right thing with it. So, for Democrats to complain about higher taxes is rare.
You will not be surprised to find it only took President Trump to make it happen.
Tariffs and Trade Wars
A tariff is not just a federal tax. It is the sort Democrats love. It’s a hidden tax. A cost added that affects the price you see (and pay) without appearing as a tax.
Like all taxes, it is a levy upon the wages of others that fills the government coffers. Swamp creatures slither across it like a drake. They take their cut then pass out the rest to well-connected cronies or interests only special to them. Democrats not only defend this practice, but they also expand its scope and cost at every opportunity.
So, to hear them caterwaul over Trump’s tariff hikes is an amusing contrast. The Left is bitching about the Federal government taking in more money. And you won’t be surprised to hear that they’re not at all honest about it.
President Trump just hiked tariffs from 10% to 25% on about $200 billion in Chinese imports. In other words, he just raised taxes by … $30 billion a year.
The total amount we all paid in taxes last year — federal, state and local — was $5.51 trillion. This tax increase that has everyone’s panties in a twist is a rounding error.
Columnist Brett Arends, who is no fan of Trump, continues.
Even if Trump slapped 25% taxes on all Chinese imports, it would come to a tax hike of … $135 billion a year. U.S. gross domestic product (GDP) last year: $20.5 trillion.
So even this supposedly scary “escalation” of this “tariff war” would, er, raise our total tax bill from 26.9% of GDP all the way to 27.5% of GDP.
One consistently unreported fact about Trump’s Trade War Games is the precision with which he has engaged “the enemy.” The Chinese, not Americans, have born the majority of costs. That has been the case up until the recent round where China fought back and raised traffic too.
The dishonest Democrats and their media homonculi didn’t even pause to take a breath. They jumped on their high horse to complain about the impact on farmers. China’s retaliation includes buying fewer farm products. So, what’s the effect of that on the American economy?
“…wheat prices are down 20% since the start of the year. Soybeans are at 10-year lows.”
Somewhere in the neighborhood of 330 million Americans (and uncounted illegal Aliens) are saving money on their weekly food bill. This represents a significant sum of money when multiplied by that many people. Dollars they may find themselves spending on things they want or need.
Money spent outside the controlling influence of the Left.
Which has to be the real reason why Democrats are so upset about Donald Trump’s Trade war.
Note: Yes, there are other costs, but with significant long term benefits to the US that harm China as noted here. And as the author notes, “we export less to China than we do to Japan, South Korea and Singapore put together.”