That 20% import tax on Mexican goods

As you may have heard, the Trump administration proposed yesterday that the wall along our southern border be paid for by imposing a 20% tax on goods imported from Mexico.

President Trump’s decision to build a wall along the length of the United States’ southern border with Mexico erupted into a diplomatic standoff on Thursday, leading to the cancellation of a White House visit by Mexico’s president and sharply rising tensions over who would pay for the wall.

With the conflict escalating, Mr. Trump appeared to embrace a proposal by House Republicans that would impose a 20 percent tax on all imported goods. The White House press secretary, Sean Spicer, told reporters that the proceeds would be used to pay for the border wall, estimated to cost as much as $20 billion.

This is so ridiculously childish it’s difficult to believe anybody actually said it aloud. To their (very modest) credit, the administration quickly downgraded the proposal to one of many under consideration rather than a likelihood.

Businesses don’t pay taxes; the consumers of their products pay them. What this proposal amounts to is pressing Mexico into service as a special purpose tax collector; the Americans who want Mexican goods will find themselves paying for a barrier between the two countries.

Remember that when you’re dipping into the guacamole during the Superbowl and some witless yahoo gets to grumbling that it’s time to show Mexico who’s the boss.

This entry was posted in General. Bookmark the permalink.