Big Tax Increase

Beginning yesterday, Donald Trump slapped a massive tax increase of more than $100 billion on nearly all American consumers. "What?! I didn't hear anything about that," you say.

The tax increase came in the form of billions in new tariffs on Chinese goods, (details here and here). At 15 percent, it will apply to about 50 percent of goods imported from China. New tariffs coming in December will begin, making every single object from China subject to Trump's new 15 percent tax.

Now Trump has been babbling some nonsense about how China will pay for all this and it won't cost Americans a dime. That is a lie.

Retailers will pay for them and then simply pass along the cost to the consumer. So what used to cost $100 will now cost $115.

The only bright side to this is that the tariffs will likely hurt both Trump and GOP Senate candidates in 2020 (details here). While it would be great to see Republicans lose control of both the White House and the Senate, this is a hell of a price to pay for that.

It will take a while for the effect of Trump's tax increase via tariffs to harm American consumers and the economy. But, ultimately, it will hasten the next recession and also make it worse.

And it will provide yet another example of why Trump is absolutely unfit to serve as President. Election Day 2020 is fourteen months from tomorrow. It can't get here fast enough.