An Alternative Perspective on Tariffs: Response to Bear Howard

By Mike Schroeder

Sedona, AZ — It is hard to read Mr. Howard’s perspective on this tariff issue. He obviously misses the big picture and some of the data is hard to swallow, especially when research is applied.

It is strange that he conveniently forgets that Trump did tariffs in 2017 during his first administration. There were tariffs that were put on China then, until Joe Biden’s handlers didn’t enforce them as Hunter and company were in China’s pocket.  The Chinese manufacturers who are supported by the government absorbed most of those tariffs, so the American Consumer saw little change in China imports. Why does not Mr. Howard know these things?

He talks about all the cheap stuff we like to buy, which in turn gives China billions of dollars which they use to fund their military expansion.  We’re paying for it.   But what is a critical mistake in the post, is that in 2022 only 16% (goods AND services) of our GDP were imports – ALL imports. Hardly a catastrophe.  But the trade imbalance has been about $1.9 trillion over time.  The US has been a patsy since WWII, and like all good programs going unchecked, (aka Federal Departments that have been created over the years with good intentions) they become a serious problem as governments take advantage of the US and the bureaucracy expands out of control.

We are the strongest economy on the planet, which is Trump’s bargaining chip.

Cheap goods from China….well yes, as the Chinese government subsidizes much of that production, or manipulates it’s currency.  Did not Mr. Howard see that either?  And China, for some time has been setting up manufacturing or simply moving goods though freight forwarders in Cambodia and Vietnam to avoid tariffs.  You think Trump is not aware of that? That has been going on for decades, and a lot of our issues with China you can lay on the lap of Bill Clinton who fought for China to be admitted into the WTO, (World Trade Organization).  Ole Billy wanted to “help” China.

Let’s talk about agriculture.  Besides national security what is government’s NUMBER ONE job for its citizens. MAKING SURE THERE IS FOOD ON THE TABLE.  If the population can’t feed itself – you’re done.  Whether it is big AG, or independent farmers.  And a big issue that needs to go away, but the clowns in DC who have never gotten their hands dirty, do not realize their food comes from farmers. They need to get rid of the inheritance tax like most states have done.  It is a killer for farmers and promotes Big AG.  Reduces competition. Makes you wonder how much money is flowing into the politicians form Big AG. And billionaires and multimillions don’t pay inheritance tax anyway.  So just another hollow talking point.

Mr. Howard apparently gets his tax talking points form MSNBC and MSM, all of which are losing viewers at a pace that looks like water coming out of a broken dam. In Trump’s first term, his tax cuts did not affect federal revenue. In fact, it went up a bit, like it historically always does.  JFK knew that, Clinton knew that and so did Bush.   But the working-class people who control the vast amount of assets in this county had more money in their pockets. Around $5,000, and inflation was running below 2 % annually, unlike what Biden’s people just did the last 4 years.

The bottom wage earners control about 2.5% of the nation’s wealth while the top 1% controls about 30%. The “middle class” holds the rest, just look at the farms, and the cities and all the houses and small businesses, holds 67%.

The “tax breaks” for Trump’s “rich friends” do not exist.  And it is probably going to get worse under the new proposed bill.  The Democrats and elites have ignored the middle class and working class for years and continue to do so.

Here is the deal (A Biden quote):

2013 to 2017, the Taxpayer Relief Act of 2012 (don’t believe a bill title) increased the highest rate to 39.6%. The “Patient Protection and Affordable Care Act” (Obamacare which was passed in the middle of the night after bribing some Democrat Senators with special deals for their states at the last minute to get their votes …but I digress)…which protected no patients and was not affordable – another story – added another 3.8% making the highest rate 43.4%. 2018 to 2025 Trump lowered the top rate to 37%, plus the 3.8% which grossed out to 40.8%, Where it is at today.

But who got the biggest cut – the Middle Class. And they felt it, well deserved.  And what else did Trump do his first day, 2^nd executive order in 2017.  Got rid of the Obamacare penalty if you did not take Obamacare, which is now codified.  And that’s another conversation unless you think men can have babies.

BUT—what REALLY happened to that top 1% that Mr. Howard conveniently leaves out.  Trump’s tax plan reduced the MAXIMUM deduction for state income tax, and personal property tax combined to $10,000. (all State and Local taxes – SALT).  So if I’m paying $70,000 in property tax, and $150,000 in state tax, that total is a $210,000 deduction off my federal income tax, now reduced to a $10,000 deduction. So the savings on Federal was $200,000 at 40.8% or $81,600….lost. Plus there were other limits placed on deductions.  Trump’s tax cut was not a friend of the wealthy.  In most cases federal taxes were the same or higher.  Sorry Bernie – not buying the Democrat dance.

What group of the 1% got whacked the most?  It is all the wealthy folks that elect to live in the most restrictive and high tax and spend states in the union where the property taxes and incomes are through the roof.  They have been screaming ever since.  Trump took their goodies away. They have been shedding their tax responsibilities to the rest of us while their state and local governments were soaking their pocketbooks.  And imagine what states those are….all Democratic controlled states.  Want a short list? Most of New England, especially NY, Pennsylvania, Illinois, California, Oregon, Washington, Minnesota and a few others. I do not know about you, but how do feel about supporting the state governments that YOU don’t live in because that WAS exactly what you were doing before Trump fixed it.

This is a Democrat shouting point, that the rich are getting a deal.  This is propaganda because they count on the emotions of people who don’t know the tax system.  The Federal tax code is incredibly complex, covers 6,871 pages.  If you add the US Treasury’s official interpretation of the code to that, you would be up to 75,000 pages.  Any wonder why the flat tax is popular, and the politicians hate simplicity?

You say that Trump is a “Lame Duck”.  Wishful thinking. He went on the campaign trail and told America EXACTLY what he was going to do.  And they voted overwhelmingly to support that, and the spread in the Electoral College really was a wakeup call.  Now he is executing his promises.  Imagine that, a person (he’s NOT a politician – he’s a pragmatist), doing what they promised with an amazing cabinet.

Regarding tariffs, if the rest of the world, the 94% (and I am not sure where that typo came from if we are only 4% of the world’s population according to Mr. Howard’s post), wants to trade amongst themselves – let them.  Of course as long as the dollar is the world’s standard currency – and Trump knows it –  (even though Biden did his best to destroy it with his $9 trillion added debt in 4 years) that is not going to happen, witness almost every country with tariffs that were announced, about 75 of them are running the US to do a deal, and he isolated China, brilliant.  Their economy isn’t doing so hot either.

There was also a comment that we cannot run the country on tariffs alone.  Although we had no income tax prior to 1913.  Our tax system is way out of control (mentioned above), and has nothing to do with raising money if people haven’t figured that out yet.

We do not have to be careful of being the party of small government.

In 1900 Government was 5.5% GDP

In 1950 15.8%

Of course, it has grown ever since with the addition of more Departments and up to 2.3 million employees. Today it is substantially over 20% and impossible to control. The Bureaucrats are running the government….and we are changing that.

The interest on our debt in 2025 will be a tad under $1 Trillion, and by 2035 it is estimated to be 4.1% of GDP which is $1.55 Trillion. Unsustainable.  Politicians don’t care, most will be out of office or dead.

Mr. Howard, it is not about how much we collect, it is about how much we spend, and we are discovering the waste in the open, for all to see, totally transparent what we all have known for decades.  The federal government is too big, has too much money, can’t control itself and is lousy with incompetence, fraud and outright stealing. And since it is not their money – they have not cared…until now.  Past president’s like Obama, and Clinton all said the same thing, we have the videos, but they did nothing. Today President Trump and his team are doing something and every American should be grateful that maybe we can start getting a handle on the monster that is getting in the way of our daily lives and the peace on this planet.