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Trump Suggests an Import Tax Can Pay for Wall on Mexico Border White House Sows Confusion About Plan for a 20% Import Tax
(about 1 hour later)
PHILADELPHIA — The White House on Thursday endorsed a 20 percent tax on all imports to the United States, an idea congressional Republicans have proposed as part of a broader overhaul of corporate taxation. Sean Spicer, the White House press secretary, told reporters that revenue from the tax would cover the cost of a wall on the United States-Mexico border. PHILADELPHIA — The White House on Thursday appeared to endorse a 20 percent tax on all imports to the United States, only to insist a few hours later that it was not endorsing the plan.
Some of those revenues, however, are likely to come from American pockets. Congressional Republicans have proposed the import tax as part of a broader overhaul of corporate taxation, and Sean Spicer, the White House press secretary, told reporters that revenue from the tax would cover the cost of a wall on the United States-Mexico border.
President Trump had previously criticized the proposal as too complicated. Representative Kevin Brady, the Texas Republican who authored the plan, told Fox News Thursday afternoon that President Trump appeared to be on board with it after an appearance by Mr. Trump at a retreat for congressional Republicans in Philadelphia.
The proposal, which Mr. Spicer said the president discussed privately with congressional Republicans before giving remarks at a party retreat here, would be a major new economic proposal that could have far-reaching implications for consumers, manufacturers and relations between governments. But later on Thursday, Mr. Spicer convened reporters again to say that the tax was just one option under consideration to pay for the wall. Reince Priebus, the president’s chief of staff, told NBC News that the proposal was just one in a “buffet” of options.
The confusion caused the Mexican peso to bounce sharply with each new development.
The House proposal, which Mr. Trump had previously criticized as too complicated, would not actually increase federal revenue. The gains from taxing imports would be offset because the government would stop taxing exports and would lower the corporate tax rate.
In addition, the import tax would not be collected from Mexicans. It would be collected from companies that sold Mexican products in the United States.
Mr. Trump would need new legislation to enact the proposal.Mr. Trump would need new legislation to enact the proposal.