If reelected, former president Donald Trump will hurt, not improve, the financial well-being of working-class Americans. The latest evidence is his recent proposal to eliminate the federal income tax and fund the government entirely with tariffs on imported goods.

A June 14 analysis by the business magazine Forbes shows Trump’s scheme would fund the government with what is akin to an across-the-board sales tax increase. This is because 100% of tariffs, taxes on imported goods, are passed on to consumers. The impact would be greatest on middle- and low-income households because we pay a larger percentage of our income on household goods. like clothing, food, cars, and electronics. Despite its faults, the income tax is still based on how much money you earn — the higher your income, the more you pay. In contrast, everyone would pay the same increased cost for an imported good, say a sweatshirt or cell phone, regardless of your income level.

Forbes estimates that an average tariff rate of 85% would be needed to replace the funding currently generated by the income tax. This would be the equivalent to a sales tax of 85% on all the imported household goods you buy. U.S.-made goods would also increase in price due to the reduced supply of goods available to purchase. Increasing prices will be like those caused by the supply chain shortages of the COVID pandemic, except on steroids.

According to the conservative think-tank the American Action Forum, the increased cost to middle income American households each year of even a 10% tariff would be in the range of $1,700 to $2,350. Simple math shows an 85% tariff would cost middle-income households between $14,000 and $20,000 annually.

Unless you are wealthy, voting for Trump is not in the best financial interests of your family.

George Seel

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