How do you like that massive Republican Tax Increase?? 

Paul Krugman on Trumpists attacking economist. One manifestation of the Republican myths that are blowing up all over: (6 minutes) 

From what I can find, the Trump lackeys don’t seem to be disputing the truth of the story that US consumers have been saddled with a massive increase in taxes, only that it was reported. Or maybe that it was reported so starkly. Truth in news reporting was something that used to be foundational in the US, now it is frequently attacked not for its validity but just for it being made public. 

Thus, Republicans are having a hard time hiding their tax increase that is being used to pay for the tax cuts for the obscenely wealthy while you and I see our income and savings stagnate and disappear to pay these higher taxes. Remember Republicans raise taxes on those who can least afford it to cut taxes for those who need it the least. 

From the Intellectualist:  

In calendar year 2025, U.S. customs duties — taxes on imported goods — totaled roughly $264 billion in gross collections.  

 Tariffs raise input costs and consumer prices, slowing economic activity and reducing income and payroll tax receipts. After accounting for those macroeconomic effects and expected shifts in trade and consumption, the net additional federal revenue attributable to newly imposed and expanded tariffs relative to pre-2025 policy is estimated at approximately $132 billion. 

 Allocated evenly across roughly 135 million U.S. households, that amounts to about $1,000 per household in 2025. Under the currently enacted and scheduled tariff structure — assuming no repeal or escalation — the comparable net figure rises to roughly $1,300 per household in 2026. Actual impacts vary by income level and by exposure to goods that rely heavily on imported inputs. 

 Tariffs are taxes imposed on imported goods at the border. Importers remit them to the federal government at the point of entry, but the economic burden passes through prices, wages, and profit margins across the domestic economy. 

 One of the stated goals of raising tariffs was to cause our trade to become more balanced. This is yet another facet of the Republican mantra and as we see in newly released data, yet another failure point: 

 Joemygod reports that the Commerce Department reported that the trade deficit recordered a record $1.2T deficit in 2025: 

The Washington Post reports: 

The U.S. trade deficit for goods hit a record $1.2 trillion last year, even as the Trump administration pursued a trade agenda with aggressive tariffs and a staunch “America First” approach. 

Fresh data released by the Commerce Department on Thursday morning showed the full-year total deficit combining goods and services was $901.5 billion, down a smidgen from 2024 but still one of the largest levels in decades. Exports of goods and services rose 6.2 percent to a record $3.4 trillion. Imports rose nearly 5 percent to a record $4.3 trillion. 

There’s major uncertainty for the U.S. and global economies about what comes next, in part because the Supreme Court has yet to rule on whether the majority of President Donald Trump’s tariffs are legal. But the data offered the latest snapshot of a historic overhaul of the economy and old global order. 

How about jobs, then. Wasn’t that the object of all those tax cuts for the obscenely wealthy to begin with? You remember, don’t you? Trickle down – the big guy gets tax cuts and eventually a little works its way into my paycheck. Then I spend my little bit more and collectively we buy enough stuff that it creates jobs. How is that doing? 

Well, if you remember the report that came out late last week, it is not doing so well. While the report for January showed some not losing too much ground, the report for 2025 was totally dialed back to indicate an average of 15,000 new jobs a month for the year. That was a bad week under Biden. 

And while the January report wasn’t horrible, I think we can expect to hear the term “revised downwards” when those numbers are revisited. That is if we believe we can trust numbers coming from this administration, which is iffy. 

The myths say Republicans are great for the economy. Data and reality say otherwise. But what about the stock market, you say. I say give it time and be prepared to move fast.