Article Summary –
A report by ITEP suggests Trump’s tax and tariff plans would increase costs for 95% of Americans, with tariffs potentially adding $2,872 annually to costs. The Harris-Walz campaign claims these policies would disproportionately impact the middle class, benefiting the wealthiest 5% instead.
Harris-Walz Campaign Analyzes Trump’s Economic Agenda Impacting Pennsylvania Households
According to a new analysis from The Institute on Taxation and Economic Policy (ITEP), former President Donald Trump’s tariff and tax plans would raise taxes for 95% of Americans. The proposed tariffs, including a 20% tariff on all imports and a 60% tariff on Chinese goods, could increase annual costs for 80% of Americans by $2,872.
Trump’s tariff policy, discussed up to 2,000% on foreign vehicles, would effectively serve as a tax on American households, adversely affecting businesses reliant on imports and causing job losses, as per the ITEP report. Economic experts argue any theoretical revenue gain would be overshadowed by the economic costs. ITEP emphasizes that “tariffs on this scale would disrupt the economy,” impacting industries dependent on imports and causing domestic price hikes.
Food costs could particularly rise, with 15% of the American food supply being imported, including key staples like seafood and fresh produce. Proposed tariffs could reduce supply, forcing grocery stores and consumers to absorb costs. Other studies, like one from Yale Budget Lab, suggest these costs could reach $7,600 annually per household. Morgan Stanley economists also predict 70,000 fewer jobs monthly due to tariffs.
Trump’s broader tax proposals include extending his 2017 tax law and cutting corporate taxes to 15%, exempting specific incomes from taxes, and repealing clean energy tax credits. These plans would reduce taxes for the wealthiest 5% while increasing taxes for others. If enacted in 2026, the richest 1% could receive an average tax cut of $36,300, while the middle 20% may see tax increases exceeding $1,500 annually.
In response, the Harris-Walz campaign released a report stating Trump’s agenda would raise costs for over 5.3 million Pennsylvania households by $3,954 yearly. Steve Wamhoff from ITEP noted that Trump’s proposals benefit the wealthy and impose higher taxes on working-class households, effectively shifting the tax burden.
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