Supreme Court says the biggest tax hike in over three decades was illegal the whole time
At least $290 billion stolen. The Democrats should promise your money back.
Today, the Supreme Court struck down Donald Trump’s tariff scheme, because the power of taxation goes to the Congress, not the president. “The Framers did not vest any part of the taxing power in the Executive Branch,” Chief Justice John Roberts wrote for the majority.
The news is being framed as a loss. “The 6-3 ruling is a major blow to the president’s signature economic policy,” NPR said. It “represents a stinging political setback,” the Post said. “The first major piece of President Trump’s broad agenda” is now upended, the AP said.
In truth, the court probably saved Trump from himself.
Courtesy of MS Now.
Hours before the court’s ruling came news of the US economy slowing down to a degree much greater than economists expected, because consumers pulled back so sharply. They did so, of course, because Trump’s tariffs scheme amounted to the biggest tax increase of the last three decades, according to the Tax Foundation. (JP Morgan Chase, in an assessment published last April, said it’s the biggest since 1968.)
The Times said the government collected nearly $290 billion in custom duties last year, triple what was collected the year before. Last week, the Federal Reserve Bank of New York issued a report saying more than 90 percent of that came out of the pockets of American consumers. (This quarter was shaping up to be worse than the last, as consumer confidence “collapsed” last month to its lowest level since 2014.)
So the court probably stopped Trump from burning up the rest of the American middle class, and sparking a broad-based backlash against him in this year’s midterms, threatening to take his party down with him. (Even people who do not pay attention to politics, indeed, who know almost nothing, rated his handling of prices at -40 percent.)
Still, in saving Trump from himself, the court made something clear to Americans that may not have been clear before this morning – tariffs are taxes. Not only that, thanks to the court, everyone now knows the biggest tax hike since the Clinton administration was illegal.
So you could say the court saved Trump, but you could also say it gave his enemies strong grounds for accusing him of pulling off the biggest heist of the 21st century, and, because of the massive scale of the burglary, the economy came to a crawl. Again, we’re talking about nearly $290 billion, almost all of it paid for by you, me and everyone we know. (I’m using that figure. Others estimate upwards of $1 trillion.)
Even Brett Kavanaugh suggested, though without meaning to, that there’s been a robbery and victims are entitled to just compensation. In his dissent, the justice said that Trump’s tariff scheme is too complicated to unwind, with the primary complication being “refunds.”
“The court’s decision is likely to generate other serious practical consequences in the near term,” Kavanaugh wrote. “One issue will be refunds. Refunds of billions of dollars would have significant consequences for the US treasury. The court says nothing today about whether and if so how, the government should go about returning the billions of dollars that it has collected from importers, but that process is likely to be a ‘mess,’ as was acknowledged at oral arguments.”
Of course, Kavanaugh is talking about refunds to importers, which deepens the injustice of it all. They didn’t ultimately pay! We did!
Courtesy of CSPAN.
I think Democratic leaders should make a deal with voters: Give us the Congress in November and we’ll pass a law forcing Trump to give back the money he stole from you. Moreover, I think the Democrats should dare their GOP counterparts to codify Trump’s tariffs and risk the allegation, entirely justified, that not only did the president pick the people’s pocket but his party now wants to make pickpocketing legal.
The Republicans probably won’t have to go that far given that Justice Kavanaugh, in his dissent, actually suggested ways for the president to get around today’s ruling, and wouldn’t you know it, that’s what Trump is going to do. In today’s press conference, during which he said he was “absolutely ashamed” of the high court, Trump announced a new set of global tariffs under a different law that restricts levies to 150 days.
It’s often said Trump doesn’t understand how tariffs work, but he does. He gets what they really are: leverage against rich people, corporations and countries he’s seeking to extort. It was reported today that he was angry with the court, but it wasn’t because it “set back his agenda.” It was because it took away his most powerful tool for seeking bribes.
Courtesy of
The president’s criminal intent snapped into focus during the presser, though it was so subtle that it went mostly unnoticed. A reporter asked why Trump didn’t work with the Congress to establish import taxes, rather than pursuing another round of tariffs that will end up being challenged in court again. Trump’s reply: “Because I don’t have to.”
“I have the right to do tariffs,” he said. “I’ve always had that right to do tariffs. It’s all been approved by Congress. There’s no reason to do it.”
Rewind: The Supreme Court just said he can’t do tariffs unilaterally, that “the Framers did not vest any part of the taxing power in the Executive Branch,” and that actions to the contrary are illegal. (Plus: Congress has not, and almost certainly will not, approve new taxes.)
Even though the Supreme Court ruled Trump’s tariffs are illegal, the criminal intent behind them hasn’t changed. US Treasury Secretary Scott Bessent said, in so many words, that the theft of the American people will continue through 2026. As for the money already stolen from us, he said: “I got a feeling the American people won’t see it.”
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