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January 26, 2017 | US Consumers to Pay for Wall: Trump Plans 20% Border Tax on Mexican Goods

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Trump has said repeatedly that Mexico will pay for the wall. NAFTA discussions with Mexico broke down because of that insistence.

Trump now proposes a 20% Border Tax to Pay for the Wall.

Excuse me for pointing out the obvious president Trump, but that is a tax on US consumers.

White House Press Secretary Sean Spicer said Thursday that Donald Trump planned to pay for a border wall with Mexico by convincing Congress to impose a 20 percent border tax on imports from Mexico.

Speaking in a gaggle on Air Force One, Spicer said the administration’s plan to force Mexico to pay for the wall included “using comprehensive tax reform as a means to tax imports from countries that we have a trade deficit from, like Mexico,” according to a pool report.

“If you tax that $50 billion at 20 percent of imports–which is by the way a practice that 160 other countries do–right now our country’s policy is to tax exports and let imports flow freely in, which is ridiculous,” Spicer told reporters, according to the pool report. “By doing that we can do $10 billion a year and easily pay for the wall just through that mechanism alone. That’s really going to provide the funding.”

He said he had been in touch with congressional leadership about the plan, which he said “respected” American taxpayers.

Respect American Consumers

Spicer would not address reporters questions regarding a tax on consumers. “I’m not going to get into it,” said Spicer.

Since the tax is on US consumers, and since bills typically act the opposite of their name (Affordable Care Act being the prime example), I kindly submit the following name for the proposed legislation: Protect the American Consumer Act (PACA).

Related Article: Sparks Fly Over Wall: Mexican President Cancels Meeting With Trump.

Mike “Mish” Shedlock

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January 26th, 2017

Posted In: Mish Talk

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