Presumptive 2024 GOP presidential nominee Donald Trump has promised to impose new tariffs if he defeats President Joe Biden in November and returns to the White House next year. But the New York Times' Paul Krugman and other economists have been warning that consumers can expect higher prices if such a policy is implemented.
Journalist Catherine Rampell, in a thread posted on X, formerly Twitter, on June 13 laid out the connection between tariffs and taxes.
CNBC's Emily Wilkins, tweeted, "Trump brought up the idea of an 'all tariff policy' that would lead to getting rid of the income tax, per sources in the room…. Also discussed using tariffs to leverage negotiating power over bad actors, per another person in the room "
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Rampell, in response, wrote, "The bottom ~40% of Americans currently pay zero (or negative) federal income tax. Presumably they would have to pay Trump's proposed tariffs though. So this sounds like a huge tax increase on the lower/middle income classes."
In her thread, Rampell tweeted her May 21 column for the Washington Post — which is headlined, "Your total tax burden would probably go up under Trump. Yes, up."
The journalist explained, "Even before this latest iteration, Trump's tax agenda amounted to tax cuts for the rich but tax increases for the bottom ~80% of households."
Rampell also posted, "This latest Trump tax plan would take us back to roughly the pre-Civil War version of taxation. Maybe that's the MAGA era he's been referring to all along."
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