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“Ted Tax” Catching on with Trump and GOP Leaders
Where in the world did Donald Trump get his terrible idea to impose a border tax that would cost Texans billions of dollars? And, why in the world would Paul Ryan and U.S. House Republicans propose a huge 20% tax on imported goods that would ultimately be paid by Texans and other Americans? Well, it turns out they likely got the idea from Ted Cruz.
That’s right. Ted Cruz may have spent his first few years in the Senate pulling off self-serving stunts, annoying his colleagues, and getting punked by Donald Trump in the 2016 presidential race, but he also proposed a massive tax increase on American families based on what he called a “border adjustment tax.” This “Ted Tax” is serving as the model – or at least the inspiration – for Trump’s border tax and the Republican’s huge import tax.
The “Ted Tax” explained
During his run for President, Ted Cruz proposed a 16% “border adjustment tax” which placed new taxes on imported goods like food and clothing. Donald Trump picked up on the idea and proposed a 20% tax on Mexican imports that would cost Texans nearly $17 billion.
Now, Paul Ryan and Republicans in Washington have embraced the “Ted Tax” approach and are proposing a 20% “border adjustment tax” that would ultimately be paid by American families. A study commissioned by the National Retail Foundation, says the tax would be devastating to American consumers reporting:
- The average American family could see up to 27% of their savings disappear under the tax.
- The cost to fill up the gas tank for the average family would increase by over $400 annually.
- On average, American families would be out $1,700 in the first year of the tax alone.
The Paul Ryan/House Republican version of the “Ted Tax” hurts families so badly that even some of Donald Trump’s economic advisors have said it is “doomed to fail.” Conservative publisher and former GOP candidate for President, Steve Forbes, said the tax will “cost American consumers a least a trillion dollars over the next ten years.”
Cruz, however, is not backing off of the “Ted Tax.” Yesterday, while giving a speech to the Texas agricultural industry, Cruz doubled down on his call for new import taxes.
Hey Abbott, will you make good on your “the only good tax is a dead tax” pledge?
During his State of the State address, Greg Abbott meekly stated “the only good tax is a dead tax.” However, months after Cruz first proposed his “Ted Tax”, two weeks after Donald Trump turned it into a border tax, and as Republicans in Washington push for an import tax, there is not a word of dissent from Greg Abbott.
In the real world of politics, silence usually signals approval. Absent Greg Abbott publicly and directly opposing the “Ted Tax” in all of its variations, we can fairly conclude that he’s signing off on massive new taxes that would ultimately be paid by Texas families. And to think, it all started with Ted Cruz.