Tariffs to finance tax relief for the rich
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As promised during the election campaign, Donald Trump will increase tariffs on imported goods from a number of countries. The reasons are varied, but what they all have in common is that they are vicarious motives. The real reason is to finance tax cuts. Crumbs of the tax cuts will benefit ordinary Americans, the winners will once again be the few extremely rich. In relative terms, the oligarchs in the US pay the least tax in the US. They will now pay less. Ultimately, it is ordinary Americans who will foot the bill.
The rationale for increased tariffs
The reasons for increasing tariffs vary from country to country. Immigration, trade deficits and the protection of the USA’s own industry are factors that are mentioned. The last point can be defended if a country engages in large-scale business subsidies. Immigration has nothing to do with the economy. A trade deficit may tell us that American industry is uncompetitive after all.
One of the reasons for immigration to the US from Latin American countries is that people are looking for work and a better standard of living. The continent has been economically exploited by the US for decades. Large American companies exploit the countries’ natural resources, and the US pays far too little for the food it imports on a large scale from Latin America.
Trump is also threatening Denmark with tariffs if they don’t sell Greenland. It’s outrageous to want to buy an area from another country using financial means. It’s also outrageous to believe that neither the US nor Denmark should actually decide on Greenland. The inhabitants should decide for themselves whether they want to be part of Denmark and have internal self-government as they do now, or gain full independence. An independence that is on their own terms, not the terms of Donald Trump.
The oligarchs need tax breaks
Increased tariffs, reduced aid and cuts in social benefits. This is Trump’s way of financing tax breaks for those who need it most, the 800 wealthy Americans. This is the group that already pays the least in taxes in today’s USA. It’s not enough, they want to claw back even more.
Increased tariffs will ultimately lead to higher prices in the US. Increased food prices and increased prices on most things. This is a bill that ordinary Americans will have to pay. Especially those who already have little money. For them, it is food prices that are crucial.
Sources:
https://www.piie.com/blogs/realtime-economics/2024/can-trump-replace-income-taxes-tariffs
https://www.oxfamamerica.org/explore/stories/do-the-rich-pay-their-fair-share