Tweet of the Absurd

 

The president frequently brags that tariffs he has imposed on imports have not only hurt China but represent a windfall to the US Treasury.  Once again he is being untruthful.  If a dose of the truth and simple math make your head hurt stop now and read no further. 

 

To be clear - tariffs are nothing more than a tax on imports.  United States importers (not China) pay them.  The US importer either absorbs the tax or passes it along to the consumer.  There is no getting around the fact that it is an American company or individual paying the tax.  The Chinese do not pay it. 

 

What about the windfall to the treasury? 

Thru the end of last year the Republican tax increase on imported goods amounted to about $12 billion (give or take) - $8 billion of which came from imported Chinese products.  Within the context of a $3.4 trillion revenue stream that is fractions of cents.  Frequently described as a rounding error.  Nevertheless, 'billions' sounds big so humor me with my continuation of this simple analysis.  It is not rocket science.  I promise.

 

The president's sin of omission is the flip side of the coin - namely the Republican welfare payments to American farmers and ranchers harmed by the Republican tax increase.  $12 billion has been authorized for those payments.  To be clear - that is $12 billion dollars in - $12 billion dollars out.  Go ahead and double check my math.  Any mention of a windfall is fiction.  It is make-believe.  Adding insult to injury is that Americans paid for the entire round trip.

 

In the meantime there has been no end to the pain and economic damage done to hardworking farmers and ranchers.  Bankruptcies are at record levels in the farmbelt.  This is not make-believe – it is tangible and real people are being harmed. 

 

I'm no fool and observing this madness from the sidelines includes more than a measure of frustration.  And I continue to struggle with how ordinarily intelligent and moral individuals accept and condone the harm of reckless policymaking and the endless lies......