What Trump’s Tariffs Will Cost You
The Tax Foundation is a conservative organization that recently released a report on President Trump and his trade war. The report focuses on how the tariffs will affect middle-class families and it’s not looking good. I recently even read another article that had top CEO’s expecting a recession for 2019.
Ericka York- analyst for the Tax Foundation said:
“These tariffs will increase the tax burden on Americans, falling hardest on lower and middle-income households, and reduce economic output, employment, and wages.”
What are the results?
(1) Consumers will pay more for goods.
(2) The tariffs will increase the costs of goods.
(3) Price increases reduce the after-tax value of labor and capital income as tariffs reduce the return to labor and capital, which results in working and investing less, ultimately decreasing output.
Per the study, the current effects are as follows:
(10 A decrease in GDP by 0.12% over the long run — the equivalent of $30.4 billion lost.
(2) The elimination of 94,300 full-time American jobs.
(3) A decrease in after-tax income of 0.3% for all Americans — and a greater decline for the middle class. According to York, for Americans in the middle quintile of income earners, the after-tax wage decrease amounts to 0.33%, or $146 per taxpayer.
If Trump goes forward with his threats:
(1) A decrease in GDP by 0.38% over the long run — the equivalent of $94.4 billion lost.
(2) The elimination of 292,600 full-time American jobs.
(3) A decrease in after-tax income of 0.92% for all Americans. For Americans in the middle quintile of income earners, the after-tax wage decrease would be 1.04%, or about $453.
The full report by the Tax Foundation is available here.
Alexander Hernandez, Esq.
President Trump is Bankrupting Farmers
Eighty-four farms have filed for bankruptcy in Wisconsin, Minnesota, North Dakota, South Dakota and Montana during the time period of 2017 – 2018, more than double when compared to 2013 and 2014.
The bankruptcy filings are due to lower prices on corn, soybeans, milk and beef according to reporting by the Star Tribune.
The increases in bankruptcy filings are due to the retaliatory tariffs employed by Trump’s administration since the Chinese market has shut itself off from the soybean market, milk, and beef.
This, after GM has announced shutting down factories and hundreds, if not thousands of employees are being laid off.
I originally wrote about this issue as it relates to dairy farmers paying the price for the Trump tariffs and that post is seen below.
The Star Tribune report could be read via this link.
Alexander Hernandez, Esq.
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Alexander Hernandez represents clients in the areas of Chapter 7 Bankruptcy, Family Law/Divorce, and car and motorcycle accidents.
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