Tariffs will raise $700 billion a year in revenue

I'm not sure that you know what "irony" is, based on this post. But let's see if you could generate complete thoughts rather than simply incorrectly using a word. Perhaps, you could start by figuring out how he gets to $700 billion per year in revenue.

 

Well, in his defense, no one said there would be math.

 

Does MAGA still not comprehend this is essentially just money coming from US consumers? How many times does this have to be explained? Did they all fail Economics?

 

Yup, I could read the headline. But not post in correct thread

Like a catch 22. Do we celebrate the win absent details or can we ask questions. Damned if you do, damned if you don’t. Well I’ll be damned.

Looking at it, probably LNG and maybe crude if we have excess. There was a 2024 article where the EU proposed to Trump they could start purchasing LNG from US vs Russia. The EU also had a 22 resolution to start moving away from Russia as an Energy Supplier. No idea where that landed.

The EU was also starting to move away from US as a armament supplier (or maybe thinking about making noise about it) and to get more independence/ self reliance. This would seem to have paused as part of this deal is arms. Who knows if the other goods tariffs get waived in a week or two or are permanent.

As to investment? No details worked out yet. Could end up being arms or baguettes for everyone.

 

even if your math is correct, that amount would basically offset the additional debt burden of OBBBA. So Trump will basically get to approximately the same deficit numbers if OBBBA never passed, and tax rates reverted to 2017 levels.

Now I’d argue that is a terrible trade off - decreased income taxes - mostly on the wealthy and paid for it with moderately higher prices and $1 trillion less health care for the poor over a decade

In some ways the tariffs resemble a consumption tax, but mainly on imports.

I don’t agree with the prioritization, or the haphazard way this has all come about but from a macro perspective it may not be all that significant net/net.

One other risk is that the tariffs either have to raise prices or decrease profits. Evidence so far is they are mostly decreasing profits. If that persists lower earnings could eventually make stocks with nose bleed valuations more precarious.

 

Long term, Trump may have unwittingly accomplished two things:

1. Put a fork in the “No new taxes” tax pledge that has ruled the R party ever since GHWB made his infamous “read my lips” statements.

2. Opened the door for a future consumption tax. Realistically the only ways make a dent in deficits is with something like a VAT. It’s unlikely we can raise income taxes enough to make a serious dent.

 

I remember when we talked about corporate taxes here and conservatives argued that they were 100% passed on to customers and that was bad (might as well have no corporate taxes they would say), so it seems like we killed that argument against corporate taxes too, since raising revenue with tax-fueled higher prices apparently is no longer bad for business.

 

I remember those days too. Back before the upside down.

 

that was always me. why I've always said corporate tax rate should be zero. Corporations don't pay taxes. Customers do. Tax income/wealth/VAT, whatever you want. Corporate taxes are a waste of everyone's time.

 

Tariffs are essentially a consumption tax, and whether or not the business chooses to eat the cost, or pass it on partially or fully to consumers, it’s still paid by Americans.

I don’t know how they can in good conscience tout tariff revenue as if it’s coming from foreign countries, but based on this thread, their base actually believes this.

For those that say the intention is to bring back jobs, there are infinitely more consumers who will now pay more than there are potential job gains (mostly low wage at that).

And if you think for a second that American companies aren’t going to use tariff inflation to raise their own prices (just a little lower than the foreign product), you’re naive as hell.

Even if another administration comes in and reduces these tariffs, prices won’t go down since companies know consumers will pay the higher prices.