“If the administration is serious about further reducing the tax burden on the middle class, the easiest and most effective solution is to walk back…misguided tariffs and avoid imposing additional trade policies that would further increase taxes and destroy jobs.”
– Scott Hodge, President, Tax Foundation, October 30, 2018
Size of proposed Trump administration middle-class tax cut: 10 percent
Tax Foundation estimate of bite on after-tax middle-class incomes from all current and threatened Trump tariffs: 1.37 percent
(Sources: “Trump wants to cut middle-clas taxes. The easiest solution? Repeal Tariffs,” by Scott Hodge, Washington Examiner, October 30, 2018, https://www.washingtonexaminer.com/opinion/trump-wants-to-cut-middle-class-taxes-the-easiest-solution-repeal-tariffs)
The tariffs should be higher, really. In general, they encourage domestic investment, discourage investment moving overseas. And they might discourage consumption, encourage saving. There’s a debate on whether consumption taxes truly discourage consumption in favour of investment.
If Trump truly wants to aid Americans, he can end FICA taxes, which could also be a step towards removing social security as a perceived retirement plan, not that I expect the US to ever be free of social security.