Income Tax is progressive when designed properly: rates rise with income, so the wealthy contribute proportionally more. It’s the backbone of fiscal equity.
Sales Tax is flat—but its impact isn’t. Everyone pays the same rate, but the poorer you are, the more of your income it takes. If you spend 90% of what you earn, you feel every cent. If you save half your income, it barely registers.
Value-Added Tax (VAT) is stealthier. It taxes every step in the supply chain, hiking prices before the product even hits the shelf. A 45% VAT—what Project 2025 would require to offset lost income tax revenue—would crater household budgets, especially for those who already live close to the edge.
Tariffs are sales taxes dressed in nationalism. They target imports and claim to protect domestic jobs. But here’s the thing: targeted tariffs can work. Temporarily. If a country dumps cheap steel to crush your mills, a tariff buys you time to modernize and compete. Same for semiconductors, solar, or critical rare earths. When used with restraint, tariffs are industrial strategy.
But that’s not what Trump is proposing.
Trump wants a 20% to 60% blanket tariff on nearly all imports. It’s not strategic—it’s political theater with a price tag. And the ones paying it aren’t the companies or countries on the receiving end. They’re the people shopping at Walmart and Kroger and AutoZone.
“Targeted tariffs protect. Broad tariffs punish.”
Broad tariffs aren’t protective—they’re inflationary. The cost gets passed to consumers. Essentials go up. Electronics, food, household goods—all more expensive. For low-income Americans, that’s a 4% cut in after-tax income. For the top earners, it barely dents the spreadsheet.
Worse, wide tariffs don’t just raise prices—they provoke retaliation. One round of tariffs, and you’re in a trade war. The EU taxes your bourbon. China blocks your soybeans. Pharmaceuticals, car parts, batteries—all caught in the crossfire. That’s not protectionism. That’s sabotage.
Oxford Economics puts the damage at a 6% drop in GDP and a 5% hit to wages. For middle-income workers, that’s a $22,000 lifetime loss. Not from a recession—from policy.
“Broad tariffs don’t protect jobs—they just raise your grocery bill.”
What Fair Could Look Like
There is such a thing as an optimal tax system. It doesn’t punish success—it just expects a fair share from those who benefit the most. It taxes income proportionally. It treats labor and capital equally. And it cushions the bottom half, who spend nearly everything they earn just to stay afloat.
Here’s what that looks like:
1. Progressive Income Tax: Higher rates on higher brackets. Not punishment—just proportionality. You earn more, you pay more. Simple math.
2. Capital Gains Parity: Right now, stock profits are taxed less than wages. If you flip houses or hedge funds, you’re golden. If you work for a paycheck, you’re taxed at a higher rate. Flip that. Tax income like income.
3. Expanded Credits: Keep and grow the Earned Income Tax Credit and Child Tax Credit. These aren’t loopholes—they’re lifelines.