NEWS
“NY Fed report says Americans pay for almost all of Trump's tariffs”
“Americans are shouldering almost all of President Donald Trump’s import tax surge, a report from the Federal Reserve Bank of New York said on Thursday.
The bank said 90% of the tariffs imposed by the president on imported goods are borne by American consumers and companies. The report pushes back against the Trump administration’s argument that the levies are paid by foreigners.
The report evaluated how tariffs impacted the economy last year, when the average of the taxes went from 2.6% to 13%. The report noted that the average level shifted over the course of the year and was at its highest in April and May, when Trump pumped up tariffs on Chinese goods to 125% before lowering them back to a still heady 113%.”
“The authors based their analysis on how tariffs worked in the first Trump term. When faced with these types of taxes, “our past work found that foreign exporters did not lower their prices at all, so the full incidence of the tariffs was borne by the U.S. That is, there was 100% pass-through from tariffs into import prices.”
The paper said that between January and August of last year Americans took 94% of the hit from Trump’s tariffs. During September and October, that ebbed to 92%, settling to 86% in November.”
This is what happens when conservative enablers determine our leaders in government, a never-ending cycle of self destruction. You have family owned farms that has been operating for multiple decades and handed over to several generations contemplating bankruptcy, to local distributors and manufacturing, especially to ordinary Americans who are buying basic essentials coming from overseas.
These companies simply add these tariffs imposed on them to the cost of their products, and Americans end up paying for these tariffs.
Welcome to PLANET GREED: Securing Tax Cuts for Billionaires While Cutting Pensions of Federal Workers, Priorities of Today's Conservatives
It took intense lobbying from President Donald Trump, an all-nighter, and a vote on a bill for which many people did not yet have a clear grasp of the final changes, but House Republicans got it done this week. They passed their version of the “one big, beautiful bill,” a behemoth that pairs tax cuts with new provisions that will push people off Medicaid and food assistance.
Low-income Americans will feel the effect of changes to aid programs, while the wealthy will see most of the windfall from tax cuts, according to multiple assessments.
Democrats argue the trade-off is cruel, but Republicans say it’s necessary to deliver on Trump’s economic agenda and to root out waste and fraud, protecting the programs for those who need them.
What the House passed is an opening bid as the process now shifts to the US Senate, which must pass its own version of a tax and spending bill.
Senators will be gauging the public reaction to the House bill and what critics have said is a reverse transfer of wealth, much of which will be put on the nation’s credit card in the form of deficit spending.
Here’s a look at how the “one big, beautiful bill” takes benefits from lower-income Americans in order to cut taxes, primarily for the wealthy.
CBO’s initial estimates found that the package’s tax measures would increase the deficit by $3.8 trillion over a decade, while other provisions would cut nearly $1 trillion in federal support for Medicaid and food stamps over that period.
Medicaid, which provides health insurance to low-income Americans, would face the largest cuts in the package, with CBO projecting a nearly $700 billion reduction in federal spending. Meanwhile, food stamps, formally known as the Supplemental Nutrition Assistance Program, or SNAP, would face a $267 billion cut in federal support.
The national debt is more than $37 trillion. How much would this bill add to that incredible figure?