JP Morgan: Families will be charged $1,000 more because of Trump. Will wipe out tax cuts.
J.P. Morgan now estimates that the average American household will have to pay an extra $1,000 because of President Donald Trump's newest round of tariffs on Chinese goods entering the United States.
The news is having aides in the White House "scrambling" to come up with a solution, trying to keep discussions about a possible downturn in the economy on the down-low while they address what to do about it.
One proposal being talked about by several senior White House officials is to temporarily cute the rate people pay in their Social Security and Medicare contributions in order to trick people into thinking they received a tax break.
After this little factoid was leaked, the White House released a statement to address it:
“As [National Economic Council Director Larry Kudlow] said yesterday, more tax cuts for the American people are certainly on the table, but cutting payroll taxes is not something under consideration at this time,” the statement said.
In the meantime, if nothing is done, Americans will feel the pinch - and if the economy turns into a recession like 74% of economists think will happen - Americans will feel it even more. And people will be angry.
Retail stocks have already suffered this last month, affecting the cost of apparel, footwear, consumer electronics, and toys. Americans buy a lot of these goods, and we're all paying a lot more.
Still - Trump is adamant the economy is strong while all of this is happening.
Another fact coming out from JP Morgan: The total impact of Trump's tariffs will effectively wipe out all the tax breaks from his 2017 tax overhaul bill, which is estimated to be at around $1,300 a year. So, in effect, it wasn't really a tax break at all, not for long.
This sounds like Trump is shooting himself and America in the foot, not leaving us a leg to stand on.