US President Donald Trump is going to introduce a 20 percent tax on goods, imported from Mexico, in order to get funds for construction of a wall on the Mexican border.
US President Donald Trump has found a source of funds for construction of a wall on the border with Mexico. The ambitious idea is assumed to be financed by introduction of a 20 percent tax on goods, imported from Mexico. Construction of the wall is one of the main election promises of Trump.
“When you look at the plan that’s taking shape now, using comprehensive tax reform as a means to tax imports from countries that we have a trade deficit from, like Mexico, if you tax that $50 billion at 20 percent of imports,” press secretary of the White House Sean Spicer said, discussing the tax with reporters on his way back from Philadelphia, where Trump spoke to both houses of Congress. “By doing that we can do $10 billion a year and easily pay for the wall just through that mechanism alone.”
Spicer explained that the wall would save money by reducing the expenses, needed for border enforcement, and slowing down illegal immigration. When he was asked if American consumers would suffer as a result of such a tax, Spicer said that the economy would adjust.
“I think what it’s going to do is lift up the wages of American workers as well,” he said. “Right now we have an influx of cheap labor. It’s going to put the American consumer back, net net, to make sure the American workers get lifted up as well.”
Afterwards, Spicer clarified that he was only offering a proposal.
“We’ve been asked over and over again ‘how could you possibly do this, there’s no way that Mexico will pay for it,’” he said. “Here’s one way. Boom. Done.”
The idea on financing of the wall’s construction has already been transferred to the Congress, where a detailed action plan will be prepared. The decree on construction of the wall on the Mexican border was signed by Trump on January 25. After that, Mexican President Enrique Peña Nieto announced that his country would not pay for the construction.
In response, Trump wrote on his Twitter that in this case it is better to cancel a meeting, scheduled for January 31. As a result, Nieto refused to come to Washington. During a meeting of the Republican Party’s leadership in Philadelphia, Trump said that the meeting will take place only if Mexico changes its attitude towards the US.