Thursday, January 26, 2017

Trump proposes 20% tax on American consumers to pay for his border wall

After the Mexican government made it clear they will not pay for Donald Trump's border wall, Trump proposed a 20% tax on Mexican imports to pay for the wall.

But the "Mexican imports" part of the tax is a lie. All taxes on imports are paid by American consumers, not by the country of origin. If you buy an import with a tarrif, YOU are the one who pays for the tarrif, not the country of origin of the product nor the company selling it.

Additionally, most Mexican imports are not even Mexican. They are American products made by American companies but manufactured in Mexico. That includes televisions, cars, clothing, bluray discs, and other products.

The only products produced in Mexico that could be considered Mexican are farming products, such as fruits and vegetables. But if Congress were to actually impose a 20% tax on Mexican food, then the food you buy at the supermarket or at a fast food place would go up, as the businesses would have to increase prices to American consumers in order to pay for the 20% tax.

That stupid and misleading is Trump's proposal. In the end, the ones paying for the wall will be the American consumers, not Mexico.


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