Friends,
Donald Trump believes his tariffs will bring so much money to the U.S. treasury that the U.S. will be able to afford another giant Trump tax cut.
But Trump’s tariffs — and the retaliatory tariffs already being imposed on American exports by the nation’s trading partners — will be paid largely by the American working class and poor.
And the people who will benefit most from another giant Trump tax cut are America’s wealthy.
It will be a giant upward transfer of wealth.
Trump has made astronomical estimates about how much money tariffs can raise.
“We will take in trillions and trillions of dollars and create jobs like we have never seen before,” he said during his recent joint address to Congress. “Tariffs are about making America rich again and making America great again.”
Last Sunday on Air Force One, Trump was even more ebullient. “We’re going to become so rich, you’re not going to know where to spend all that money,” he said.
The Committee for a Responsible Federal Budget estimates that if Trump’s already-announced tariffs on China, Mexico, and Canada went into effect, they’d bring about $120 billion a year into the U.S. treasury, and $1.3 trillion over the course of 10 years.
Among Trump’s first actions at the outset of his second term was to order the treasury to establish an “External Revenue Service” to collect tariff revenue that would enable the U.S. to pay down its debt and reduce taxes.
Howard Lutnick, Trump’s secretary of commerce, said on Fox News in late February that the goal of the External Revenue Service “is very simple: to abolish the Internal Revenue Service and let all the outsiders pay.”
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