Donald Trump’s 20% Tax On Mexican Imports Will Hurt Americans
Cheeto-in-Chief has no idea how any of this works…
Donald Trump recently recommended that the US government should tax 20% on all Mexican imports to pay for the wall. In Trump’s head, this made sense because he could convince the public that Mexico would actually be paying for the border wall. The only problem?
This is alternative facts!
According to basic economic comprehension and Quartz, the 20% tax would only hit Americans where it hurts the most:
This tax would mostly be paid by US consumers, in the form of higher prices. How do I know? Basic economics.
Here’s a simpler example. Imagine the government imposes a $1 tax on each gallon of gasoline. And let’s say the way they implement that tax is by requiring oil companies to pay them a bunch of money at the end of the year—specifically, $1 for each gallon of gas they sold. Sounds like a tax on the oil companies, right?
Not so fast. When the price of oil rises, gas companies make up for a lot of their losses by charging consumers more. They do the same with a tax increase.
This is your president: