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Trump is still gunning to remove taxes for individuals earning less than $150,000 per year.
Implementing significant reductions to individual and corporate taxes would also be on the table.
Here are a few key takeaways:
What Are Tariffs and How Do They Work?
A tariff is a tax that is levied on imported goods.
Tariffs are paid to the U.S. government before foreign goods can be brought into the country.
The short-term impact would be that prices would rise on all imported goods.
So overall prices will rise.
The longer-term effect would be a reduction in the quantity of foreign goods imported into the United States.
There will be fewer imported goods available in the United States, which could also drive up prices overall.
This key in of consumption tax affects lower-income consumers on a disproportionate basis.
would pay a higher amount in tariffs, relatively speaking.
Those who spend less on necessities, or who earn income from investments, would pay less.
On a longer-term basis, the intended effect of a tariff is to reduce the amount of imported goods.
The truth is, it will benefit the wealthy far more than the lower and middle classes.
(Well exclude their housing costs from this exercise, since housing wouldnt be affected by a tariff.)
The Smiths have an annual income of $150,000, which barely covers their expenses.
So, the Smiths are paying a higher percentage of their income on necessities.
Yet the Joneses have double the annual income of the Smiths.
Caitlyn Moorhead contributed to the reporting for this article.
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