Tariffs erase tax-cut benefits

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June 18, 2018 - 11:00 PM

More than a few conservative intellectuals have warmed to Donald Trump’s trade protectionism because it supposedly helps blue-collar Americans. But what if his tariffs do the opposite?

Erica York at the Tax Foundation crunched some numbers recently showing that Mr. Trump’s proposal for a 25 percent tariff on imported cars, trucks and parts could eliminate half of the income gains from tax reform for millions of Americans. Those in the lowest income quintile could lose 49 percent of their tax gains. Say for ease of calculation that these folks received a $100 after-tax bonus from…

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