Trump's record tax increase

The taxes on imports (tariffs), which Donald Trump establishes in connection with his previous taxes next week, will be among the greatest tax increases that have ever been imposed. They are far greater than the tax increases, which were introduced by the President Clinton and Obama, which the Republicans put in frenzy.

The basic story is what it looks like now that Trump will impose 25 percent tax on imports from Canada and Mexico and at the same time increase its 10 percent taxes to imports from China to 20 percent. Our imports from Canada and Mexico came to around 1 trillion US dollar last year, while our imports from China were just over 400 billion US dollars.

This means that the tax is to adjust the trading patterns to 330 billion US dollars (250 billion US dollars plus $ 80 billion). There are many problems with this simple calculation. Trump can enable some objects such as Canadian oil to be taxed into a lower set. However, the number also excludes Trump's tax on steel and aluminum imports from other countries, which would make the tax larger.

This means that we can use this 310 dollar number as an appropriate approach to the size of Donald Trump's tax increase. Since GDP is around 30 trillion US dollars in 2025, this tax increase would correspond 1.0 percent of GDP.

In comparison, the tax increase, which Bill Clinton penetrated in 1993, mainly on high-end taxpayers, was 0.66 percent of GDP. The tax increase, which President Obama started in 2010 to cover the forecast costs of Obamacare, amounted to 0.43 percent of GDP, less than half of the size of Trump's tax increases, as shown below.

If the Republicans are really against tax increases, they should be outraged by the enormous taxes that Donald Trump imposes on imports. On the other hand, these import taxes of families with low and medium -sized incomes are paid disproportionately, since both spend a larger proportion of their income than rich families and what they spend is more disproportionate than for services. (Households with low and medium -sized incomes give less likely to eat money and eat.)

If the main concerns of the Republicans are the taxes that the rich people pay, it is more understandable that they would not be angry about the huge taxes that Donald Trump imposed on imported goods. The rich will be less affected by these taxes and can be more than compensated by tax cuts that Trump promised to you.

This was published for the first time at Dean Bakers Beat the Press Blog.