Peter Navarro Says Tariffs Will Be a $6 Trillion Tax Increase, but Also a Tax Cut
In an interview with Fox News on Sunday, White House economic advisor Peter Navarro said the tariffs set to be announced this week would be one of the biggest tax increases in American history—while also promising the exact opposite.
“The message here is that tariffs are tax cuts,” Navarro told Fox News’ Shannon Bream in response to a question about President Donald Trump’s apparent lack of concern over how tariffs could hike the price of cars.
But that’s not the message that Navarro had delivered just moments earlier, when he touted the revenue-generating potential of the new tariffs, which Trump has threatened to impose later this week.
“Tariffs are going to raise about $600 billion a year, about $6 trillion over a 10-year period,” Navarro said.
If that’s true, then these tariffs would be the biggest peacetime tax increase in American history. A $600 billion annual tax increase would equate to about 2.2 percent of gross domestic product. Only the tax increases implemented to pay for World War II would compare.
Navarro’s way of squaring that circle is to argue that those tax increases aren’t tax increases at all—because the tariff revenue will be used to offset the budgetary cost of extending the 2017 tax cuts.
It is impossible to know whether that math works out because the White House has released few details ab
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
