Trump Considers Tax on Imports From Mexico
President Trump has made it clear he plans to have a wall built along the U.S./Mexico border, and he says he can make Mexico pay for it. Mexican government officials have repeatedly said they will not pay for it.
So how does he plan to fund it?
Last week, White House press secretary Sean Spicer said one way a wall could be funded is through a 20 percent tax on imports from Mexico. “The idea is that here is an easy way that generates more than enough revenue right off the bat that achieves the goal,” he said.
Republicans don’t usually support measures that limit free trade, but they are considering Trump’s complaints that companies are able to move jobs to Mexico and other countries and then sell products back into the United States tax-free.
The border tax would tax imports into the United States, but not exports. The United States imports a lot more than it exports, so a tax could raise a lot of money for government expenditures while also possibly providing for lower corporate and personal income taxes.