Nobel-winning economist Paul KrugmanJeff Zelevansky/Getty ImagesTrump's proposed tariffs would benefit only the wealthiest Americans, Paul Krugman wrote in a new op-ed.80% of US consumers would lose after-tax income, he said.Goldman Sachs also sees higher tariffs triggering sizable Fed interest-rate hikes, Goldman Sachs says.Donald Trump has pitched sweeping tariffs as a win for the US consumer, but only the wealthiest Americans will benefit from rising trade barriers, Paul Krugman wrote in The New York Times.In Tuesday's opinion piece, the Nobel-winning economist took aim at Trump's recently floated idea to replace the US income tax with higher import duties.Putting aside the wide gap between the revenue streams both provide, a simpler policy that would maximize tariffs and cut income taxes by the same amount still bodes ill for most Americans, Krugman wrote."The net effect would be negative for 80 percent of the population, especially for the bottom 60 percent, while extremely positive for the top 1 percent," he outlined, citing data from the Peterson Institute for International Economics.Peterson Institute for International EconomicsIn this scenario, lower- and middle-income consumers would see their after-tax income drop, and would enjoy little benefit from the tax cuts.
Comment on Trump's wide-reaching tariff plan will hurt average Americans and only help the top 1%, Nobel-winning economist says
fdemott@insider.com (Filip De Mott), Business Insider
Wed, 07/03/2024 - 10:44am
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