It’s always great to see the Republican President-Elect of the United States openly behaving like a Democrat. Democrats love taxes, and they love, even more, telling people they want to tax corporations or raise taxes on corporations. Now Donald Trump is doing it.
He tweeted this today:
General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A.or pay big border tax!
— Donald J. Trump (@realDonaldTrump) January 3, 2017
It is not arduous at all to break down. The MSRP of a 2017 Chevy Cruze is $16,975. Let’s assume for a moment; Trump’s wants to impose a 25% (he wants it to be big, remember) border tax on each vehicle. The tax likely wouldn’t be applied against the MSRP, but it doesn’t matter. The formula still works the same.
A 25% border tax on a Chevy Cruze comes to $4,243. Donald Trump is oblivious to the fact that Chevy is not going to eat this cost. They’re just going to pass it along to the consumer. That $16,975 car will now cost $20,000.
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In addition to the consumer having to pay, investors and shareholders also get the short end of the stick:
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One would think a “genius” businessman like Trump can comprehend something so simple. This is not complicated, advanced math.
Trump fans cheer this on, foolishly thinking it will “bring back the jobs.” All it does is hit them in the wallet.
- Discussion
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With One Tweet, Donald Trump Proves He Doesn’t Know How Taxation Works https://t.co/a8QtD2NdIm
— RedState (@RedState) January 3, 2017
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