Taxes forced on Americans due to President Donald Trump’s tariffs now exceed the tax increases from the Affordable Care Act, according to the Washington Examiner.
On Sept. 19, President Trump imposed a 10 percent tax on $200 billion of Chinese imports. On Jan. 1, 2019, this tax will rise to 25 percent. But even without that January tariff rate increase, trade taxes on American businesses and consumers will exceed those of the ACA.
With the added $20 billion in trade taxes coming from this latest round of tariffs, the National Taxpayers Union Foundation now estimates the total annual cost of enacted tariffs to be $41.65 billion. That easily outpaces the tax bill from the Affordable Care Act for next year ($34.6 billion) after accounting for recent changes to the ACA.
The $67.2 billion estimated 2019 tax burden of the Affordable Care Act prior to those changes is lower than the cost of new trade taxes once a scheduled $30 billion tariff increase takes effect in January. If every currently proposed tariff is enacted, the total trade tax burden will nearly double even the tax burden of the pre-reform ACA — NTUF estimates the net total of proposed and enacted trade taxes to be $132.55 billion. That would offset more than 70 percent of the $188.8 billion in 2019 individual income tax cuts.