Trump’s 10% tariffs would be $1,500 tax hike for families, left-of-center think tank finds
By
Zachary Halaschak
March 27, 2024 3:50 pm
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A new analysis found that former President Donald Trump’s proposal to apply 10% across-the-board tariffs would be akin to a $1,500 annual tax increase for the typical household.
The analysis, released by the left-of-center think tank Center for American Progress, found that Trump’s 10% tariffs would squeeze consumers because companies would pass the costs on to them. The tariffs would be like a $90 tax increase on food, a $90 tax increase on prescription drugs, and a $120 tax increase on oil and petroleum products.
“Donald Trump’s tariffs would crush America’s middle class by increasing the cost of everything, from food, fuel, clothing, and more, while failing to boost American manufacturing,” said Brendan Duke, senior director for Economic Policy at CAP Action. “Trump’s plans stand in stark contrast to President Joe Biden’s proposals, which would cut taxes for working families and continue the recent historic surge in the construction of American manufacturing facilities.”
Trump is at odds with many free-trade proponents in his party, although Republicans, led by Trump’s populist appeal, have increasingly become more open to tariffs. They see it as a way to reshore jobs and rebuild the country’s manufacturing base.
Trump floated the idea of 10% across-the-board tariffs last year. Such an aggressive move could be seen, at least in terms of trade policy, as a shift to the left of Biden, who hasn’t increased tariffs but has kept some of Trump’s tariffs in place. That is one reason why the CAP attack is worth noting.
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https://www.washingtonexaminer.com/policy/finance-and-economy/2941790/trumps-10-tariffs-1500-tax-hike-families/