{"id":270305,"date":"2025-02-03T21:52:39","date_gmt":"2025-02-03T21:52:39","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2025\/02\/03\/biggest-tax-increase-ever-econbrowser\/"},"modified":"2025-06-25T17:09:29","modified_gmt":"2025-06-25T17:09:29","slug":"biggest-tax-increase-ever-econbrowser","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2025\/02\/03\/biggest-tax-increase-ever-econbrowser\/","title":{"rendered":"Biggest Tax Increase Ever! | Econbrowser"},"content":{"rendered":"

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In nominal dollar terms. Thanks, Trump.<\/p>\n

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Notes: <\/strong>Tax increase associated with announced Trump tariffs on Canada, Mexico, and China assuming a unitary price elasticity of import demand (orange bar), and assuming zero (orange bar plus light orange bar). Source:<\/strong> graphic from Factcheck (2012)<\/a>, modified by author.<\/em><\/p>\n

Over the weekend, US taxes roughly $2.4 trn worth of goods (2023 amounts). That\u2019s the biggest one year<\/em> tax increase in dollar terms since\u2026 ever, at $364 bn (if Trump goes through with plans). Taxes collected by CPB, and going into the US Treasury. Automatic<\/em> escalation clauses if the target countries retaliate (which Canada already has declared).<\/p>\n

That\u2019s in nominal dollar terms. As a share of GDP, it\u2019s 1.2%, 1% assuming unit elasticity.<\/p>\n

I note that with the 30 day deferral for Mexico, it\u2019s still a $245 bn increase in taxes in effect as of Tuesday.<\/p>\n

\u00a0<\/p>\n<\/p><\/div>\n

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