Trump is said to announce the largest tax increase for Americans in decades

Washington – President Donald Trump is to announce his decision on Wednesday to one -sided to increase taxes on American importers in the next 10 years, possibly the greatest tax increase since World War II, with these costs being passed on to consumers.

“It is an extraordinary tax increase,” said Douglas Holtz-Ekin, a conservative economist of the American Action Forum and formerly director of the Congress budget.

Trump has commissioned his announcement of his new import taxes – which he himself had for weeks without the consent of the congress. On Tuesday, officials of the White House rejected to show exactly how big a Trump tariff would impose and in which countries his statements have pointed out in the past few days that this would be all over the world.

“Essentially all countries,” he told Air Force One on Sunday.

The Trump trading consultant Peter Navarro said to Fox News on this day: “The tariffs will contribute around $ 600 billion a year over a period of 10 years, around $ 6 trillion.”

If this number is correct, this would be the third largest tax increase in US history with 2% of gross domestic product. Only the tax increases approved in the 1941 Congress, 2.2% of GDP and 1942, 5%, were greater, according to statistics created by the tax foundation.

“It would be the greatest increase in peace tax in history and the third largest increase in total tax only for the financing of income laws from 1941 and 1942 to finance the Second World War,” said Erica York, the vice president of the tax policy of the tax foundation of the tax foundation.

However, she and other economists believe that Trump and his allies will exceed the amount of money that the tariffs send to the Ministry of Finance, because the Americans will quickly switch to cheaper replacement flowering.

“I very much doubt that the number of points is real,” said Jason Furman, business professor at Harvard University and former business consultant at the White House in Barack Obama.

Nevertheless, Trump even proposed the removal of the Internal Revenue Service and replaced it with an “external Revenue service” to arrange for other countries to pay our tariffs.

However, one federal authority has already existed to collect tariffs and have been around for two centuries: US inches. And the way it does, and some of his top adjutants who work the work of the tariffs, and some of his top helpers.

When foreign goods come to the United States, be it by ship or plane or truck, the US importer – whether this is a private individual, a manufacturer, a wholesaler or a retailer – must pay the tariff before the goods are released to get to the country. Manufacturers, wholesalers and retailers all pass on this import tax in the form of higher prices to consumers. If the tariff or import tax is increased, this is passed on as a price increase for consumers.

“The only way to pay the other country if they reduced the price of the estate by the amount of the tariff,” said Holtz-Ekin, adding that, although this occasionally happened in the past, this is being introduced for the first time that exporters never keep their prices so low for a long time.

York said the bigger problem that Trump’s tariffs will do for both the United States as well as for the global economy as well as American consumers and employees. “Trump’s tariffs will violate American workers and companies, significantly increase the tax burden on the working class of the working class and possibly ignite a destructive global trade war,” she said. “It is unnecessary economic pain that will not lead to economic profits.”