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Did Donald Trump impose ‘the largest tax hike in our lifetime’? | Economy

Politicians and economists say that the width of the “liberation day” of President Donald Trump has reached A. Historical Increased taxes in the United States.

“Donald Trump has imposed the largest tax increase in our lives,” Democratic Governor Gavin New Roiri published X on April 2.

Other Democratic politicians made similar claims, including JB Pritzker, American Senator Chuck Schumer, and US representative Jared Moskovic, while Republican Mike Pines described it as “the largest tax increase in peace time in the history of the United States.”

It is clear that the change under the April 2 plan is historic. the Global definitions Trump has announced the goal of almost every country to trade with it. All countries on the list face a 10 percent basic tariff, with I am free Facing definitions reaches 50 percent.

Estimates are different from the scope of the high tariff, partly due to Trump back and forth on a specific tariff, and the inability to predict in the global market. Trump has repeatedly posted on the social media he is negotiating with Countries On customs tariff rates, the plans can be transformed.

Measuring the average customs tariff rate, Trump’s tariff is ranked largest in almost a century. Measurement through the amount of tax revenues that the definitions will bring, estimates vary.

Five out of seven island estimates these new classifications as the largest tax increase since 1951, with the classification of the most conservative estimates as the largest since 1982.

Is increasing definitions such as “tax height”?

Experts say it is fair to summon customs duties a tax.

“They are taxes that apply to US imports,” said Erika York, Vice -President of Federal Tax Policy with the Tax Corporation, a non -party research tank.

Customs duties are taxes to import companies that pay them to the federal government when purchasing goods and materials from other countries. Companies often pass along the increasing cost of consumers.

Reports from the economic policy of thought reservoirs with a wide range of political opinions describe definitions as a return tax, which means that low income groups amount to increasing costs.

Economists

Measuring the height of the tariff comes with challenges. Customs tariff rates vary according to the country and include exemptions for specified commodities.

Trump’s tariff policy was volatile, with the announcement of the customs tariff and then quickly retreated, and sometimes during the day. They can change depending on how countries negotiate with the United States or Respond With their definitions.

One way to measure the volume of tariffs is to compare the average new tariff rate with historical prices.

Various economic policy groups, including the Tax Corporation and Yale and JPMorgan Chase, have estimated new tariff rates by 16.5 percent, 22.5 percent and 27 percent. Each rate is the largest for nearly a century.

When Trump took office, the average effective tariff was 2.4 percent.

When measuring new definitions with expected revenues, it is still historical

Another way to measure the effect of customs tariffs through expected revenue sets. The more revenues that the government gathered, the higher.

The Trump administration has argued that by increasing revenues through definitions, other federal taxes can be reduced. Economists have previously told us that high definitions are not likely to generate sufficient revenues to make meaningful tax discounts for typical Americans.

Some of the largest estimates of customs tariffs came from the Trump administration. In an interview with Fox News on March 30, White House Trade Adviser Peter Navarro The aforementioned non -Romotian definitions “will raise about $ 600 billion [a year]About 6 trillion dollars over a period of 10 years, “with an additional $ 100 billion annually of car tariffs.

One of the methods that economists have developed these estimates in the historical context is the study of increases in tax revenues as a percentage of GDP (gross domestic product).

The 2006 Treasury report calculated this value for all the main tax bills since 1940. Most of the largest tax increases occurred during the war period, in the 1940s and 1950s.

If tax revenue increases by the estimated amount of Navarro, $ 700 billion, it will represent about 2.3 percent of GDP approximately $ 30 trillion, making it the largest tax increase since 1942.

Navarro did not explain how he reached this number, which amounted to $ 700 billion, but CNN found that it would require a 20-25 percent tariff for goods worth $ 3.3 trillion, which is the amount of import in the United States in 2024.

Some economists questioned Navarro’s estimate. “I clearly put,” York said. “The estimate of Navarro is wrong,” “Customs duties will reduce imports, and mechanically reduce income and salary tax revenues; if you do not calculate those who have been overlooked the amount of revenue tariff you will produce.”

The American economy can shrink, imports can decrease and countries can take revenge on their definitions, which leads to a decrease in tax revenues from definitions.

The estimate of the 2025 tax institution revenue was less at $ 258.4 billion, or 0.85 percent of GDP, making it the largest tax increase since 1982.

Michael Ferrol, the chief economist at JPMorgan Chase, gave an estimate of $ 400 billion, or about 1.3 percent of GDP. He described this as the largest tax increase since 1968, but based on data from the Treasury, 1.3 percent of GDP will make it the highest level since 1951.

Dean Baker, co -founder of the Economy and Policy Research Center, a liberal research tank, told Politifact for some revenue estimates that seem very low. It is approximately $ 1 trillion of tax revenues.

“As a practical issue, some goods are exempt and the request will definitely fall, so it will not be anywhere near this high, but I think the number of JPMorgan is very low,” Baker said.

Five of seven of the estimates we set for the tariff plan in Trump are the highest since 1951.

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2025-04-08 10:15:00

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