Former President Donald Trump is dragging the whole Republican Party off a cliff with his "bone-headed" proposal to replace income taxes with tariffs on imported goods, wrote Catherine Rampell for The Washington Post.
Economists have broadly panned the idea, warning that it would amount to a massive tax increase for everyone but the ultra-rich, by making everything more expensive, and would make maintaining government revenue for essential services impossible.
But the GOP has closed ranks around the idea, with RNC spokesperson Anna Kelly saying, “The notion that tariffs are a tax on U.S. consumers is a lie pushed by outsourcers and the Chinese Communist Party.”
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It's not a lie at all, said Rampell.
"Multiple careful studies found that the costs of those tariffs were either mostly or entirely passed on to Americans in the form of higher prices. A more recent analysis estimated that his new tariff proposals would cost the median U.S. household an additional $1,700 per year," wrote Rampell. "But the modern GOP being what it is, party apparatchiks must defend every bone-headed idea their presumptive presidential nominee utters. Thus, critics must be 'outsourcers' (which seems unlikely for most economists, who rarely own manufacturing plants) or, naturally, Marxists."
"The expected costs of Trump’s recent tariff proposals would be staggering," she continued. "For example, his plan for a universal 10 percent tariff coupled with a 60 percent tariff on Chinese goods would more than wipe out any savings most Americans would get from extending his 2017 income tax cuts, according to estimates from the Peterson Institute for International Economics.
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The bottom 80 percent of households would see a tax increase on net." Meanwhile, we would be losing $3 trillion in tax revenue per year, and there's no way to make that much from tariffs — $3 trillion is roughly the total value of all the goods we import annually.
The worst part of it all, wrote Rampell, is that while Trump at least had some sensible advisers last time pushing back on ideas like this, he is setting himself up now to have an army of loyalists at his disposal who will obey his every command.
"Project 2025, a Trump-aligned group, is already screening a more professionalized army of second-term loyalists, all of whom will obediently execute Trump’s orders, and dot their I’s and cross their T’s — on trade and everything else," she wrote. "Unless they’re also secret communists, of course."
