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Trump wants to tax the world (www.politico.eu)

submitted 2 days ago by [email protected] to c/economics

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Summary

Donald Trump is pushing for high tariffs, not just to cut trade deficits but also as a revenue source to reduce domestic income taxes.

His administration envisions a return to 19th-century tariff-funded governance, but critics warn this won’t generate enough revenue and risks harming the economy.

Economists argue free trade benefits the U.S. more than protectionism, and tariffs could backfire by raising consumer prices and reducing trade.

If enacted, Trump's plan may isolate the U.S. economically while empowering global rivals like China.

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[–] Blue_Morpho 22 points 2 days ago (2 children)

"Trump wants to tax the world" ???

That's a horrible headline. It feeds the myth that tariffs are a tax on other countries. They aren't. Tariffs are a name for a type of sales tax.

The title needs to be "Trump wants to raise taxes on Americans." Because that's what a tariff is. It's a tax on Americans- not anyone else.

Fuck the media for not attempting to educate Americans.

[–] Pronell 4 points 2 days ago

Okay, so what's the other side? He decides not to tariff them if he gets a personal bribe or policy concession.

That's the Trump tax.

[–] [email protected] -1 points 2 days ago (1 children)

First and Foremost a tarrif is a the tax on corpos profit margin... They are already charging the max price they can...

So this will hurt tbeir profit margins first, then price might go up.

Note that US is largely food and energy sufficient

[–] Blue_Morpho 4 points 2 days ago (1 children)

First and Formore a tarrif is a the tax on corpos profit margin

No it isn't because under no circumstances will a corporation cut their profit margin to pay a tax. Taxes are always passed to the consumer. It is a tax on American corporations paid for by Americans. Foreign companies do not pay tariffs.

[–] [email protected] 0 points 2 days ago

the chocie is either revenue or profit margin.

people aint getting anymore money, they already paying max after years of inflation.

thats nvidia CEo went sucking dick... he knows this.

Foreign companies do not pay tariffs.

Correct, us corpos do 🐸 since you know they are the importer of record and have to clear customs