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Montevideo, October 5th 2022 - 22:02 UTC

 

 

White House considering a 20% tax on all imports to United States

Friday, January 27th 2017 - 11:23 UTC
Full article 16 comments
Spicer convened reporters to say that the tax was just one option under consideration to pay for the wall. Spicer convened reporters to say that the tax was just one option under consideration to pay for the wall.
Reince Priebus, the president’s chief of staff, told NBC News that the proposal was just one in a “buffet” of options. Reince Priebus, the president’s chief of staff, told NBC News that the proposal was just one in a “buffet” of options.
Trump admitted tax reform to reduce trade deficits, increase exports, and generate revenue from Mexico that will pay for the wall ”if we decide to go that route.” Trump admitted tax reform to reduce trade deficits, increase exports, and generate revenue from Mexico that will pay for the wall ”if we decide to go that route.”

With the conflict with Mexico escalating the White House on Thursday appeared to endorse a 20% tax on all imports to the United States, only to insist a few hours later that it was not endorsing the plan.

 Congressional Republicans have proposed the import tax as part of a broader overhaul of corporate taxation, and Sean Spicer, the White House press secretary, told reporters that revenue from the tax would cover the cost of a wall on the United States-Mexico border.

Representative Kevin Brady, the Texas Republican who authored the plan, told Fox News Thursday afternoon that President Trump appeared to be on board with it after an appearance by Mr. Trump at a retreat for congressional Republicans in Philadelphia.

But later on Thursday, Mr. Spicer convened reporters again to say that the tax was just one option under consideration to pay for the wall. Reince Priebus, the president’s chief of staff, told NBC News that the proposal was just one in a “buffet” of options.

The confusion caused the Mexican peso to bounce sharply with each new development.

President Trump alluded to the idea of a border tax, saying, “We’re working on a tax reform bill that will reduce our trade deficits, increase American exports, and will generate revenue from Mexico that will pay for the wall if we decide to go that route.”

After the speech, in a brief, impromptu news conference as Mr. Trump flew back to Washington, Mr. Spicer told reporters that the president now favored the plan to impose a 20% border tax as part of a sweeping overhaul of corporate taxation. Only last week, Mr. Trump had dismissed the tax as too complicated, favoring his own plan to impose a 35% tariff on manufactured goods made by American corporations in overseas factories.

The House proposal, which Mr. Trump had previously criticized as too complicated, would not actually increase federal revenue. The gains from taxing imports would be offset because the government would stop taxing exports and would lower the corporate tax rate.

In addition, the import tax would not be collected from Mexicans. It would be collected from companies that sold Mexican products in the United States. Besides Mr. Trump would need new legislation to enact the proposal.

If Mr. Trump does eventually announce his support for the tax plan, it could have a broad impact on the US economy, and its consumers and workers, by sharply increasing the prices of imported goods or reducing profits for the companies that produce them. Other nations could retaliate, prompting a trade war that could hit consumers around the globe.

Retail businesses could see their tax bills surge, said David French of the National Retail Federation, who predicted that those costs would be passed on to consumers. He called the idea “very counter to the way consumers are feeling at the moment.”

Top Comments

Disclaimer & comment rules
  • Captain Poppy

    CFK, American style......so much for GOP and those free trade and markets. Perhaps I will stay in Argentina a bit longer, like 4 years.

    Jan 27th, 2017 - 11:48 am +4
  • Captain Poppy

    You are such a simpleton Tobi. Try a name without troll....use fool instead, it's more befitting.

    Do you call white people anglos as a racist barb?

    Jan 27th, 2017 - 06:12 pm +4
  • Captain Poppy

    Yes, but Elaine, you've been here enough to know that:
    1-the GOP do not like nor agree with much of Trump
    2-Trump is not a GP
    3-The GOP is using Trump as a vehicle to advance their agenda
    4-The GOP in various venues have already spoken out against many things he is saying
    5-Once they have accomplished their agenda, I hardly see the GOP toying with a populist fascist leader of their party.

    Every day in the news, you can't change a channel without seeing a GOP Rep or Senator refuting what Trump says. Even now with the tax talk, Trump is already walking that back after Texas state and federal legislators went into a feeding frenzy over not only the tax, but also the wall.

    Wishful think in tobi.......they may be unoriginal, but they will remain the worlds leaders. So I suggest that you do not get your panties in a bunch or someone just might reach out and grab your.......

    Jan 27th, 2017 - 03:41 pm +3
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