Donald Trump broke his promise to reduce the deficit in favor of giving tax breaks mostly to the rich. Now he’s clawing back most of the tax breaks that regular Americans may be getting by making them pay tariffs for his reckless trade war:
President Donald Trump’s trade wars have already wiped out all but $100 of the average American household’s windfall from Trump’s 2017 tax law. And that’s just the beginning.
That last $100 in tax-cut gains also could soon disappear — and then some — because of additional tariffs Trump has announced or is considering. If the president makes good on his threats to impose levies on virtually all imports from China and Mexico, those middle-earning households could pay nearly $4,000 more as they shell out more for a vast range of goods — from avocados to iPhones.
Subtract the tax cut, and the average household will effectively be paying about $3,000 more a year in additional costs [Laura Davison, “Trump’s Tariffs Have Already Wiped Out Tax Bill Savings for Average Americans,” Bloomberg, 2019.06.07].
South Dakota’s lone Congressman, Dusty Johnson, confirms that Trump is really raising taxes on South Dakotans:
We shouldn’t operate under any false pretenses…. Tariffs do raise costs to Americans, and that is, for some American families, that may take a thousand, two thousand dollars out of their pocket, and so that could absolutely for some folks offset the benefits of the tax cuts [Rep. Dusty Johnson, transcribed from audio, Jerry Oster, “Tariffs Offset Tax Cuts,” WNAX, 2019.06.12].
Usually South Dakota Republicans would be crying to oust any elected official who was saddling South Dakotans with another four-figure tax bill. But when Donald Trump affirms their id, Rep. Johnson is willing to roll over and say warm fuzzy things about “understand[ing] the President’s desire to try to think long-term…” even though it is clear that Donald Trump doesn’t think past his next extemporaneous comment to Fox and Friends, let alone the next few years of economic growth and international trade relations.