Forget the Level - Why tariffs effectively raise taxes on the poor and not on the rich.

 Let us forget what a clusterfu stupid idea tariffs are in general.  We can look at this later. But let's look at why this is very bad for most people, and the poorer you are, the worse it will be.

Tariffs are like taxes, which is why the President says that we will raise $6 trillion with them, wipe out our debt, and eliminate income taxes. Poor people tend to buy cheaper and less well-made items, normally imported.

The short answer is poor people can afford things the least.

Let's look at three couches: one from Ikea, one from Wayfair, and one from RH Home. I tried to find the same-looking item for each. 

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Here is a sofa from Ikea:

It costs $400. With tariffs, it will cost: $648 (if made in China) or $520 (if made in Europe)

If you take home $2,400 a month ($15.00 an hour), the price increase to the consumer will increase the amount you have to spend that month by 10.3% more (increase / monthly income).

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Here is the sofa from Wayfair:

It costs $500.00 - With tariffs, it will cost: $810. (made in China)

If you take home $12,000 a month ($75 per hour), the price increase to the consumer will increase the amount you have to spend that month by 2.5% more (increase / monthly income).

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Here is a sofa from RH Home:

It costs $6,290. With tariffs, it will cost: $6,290. This sofa is made in America.

If you take home $16,666 a month ($200,000 per year), the price increase is %0. 

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This does not consider the quality of the sofa or the life of the product. The people that afford it least pay the most in percentage terms. 

Now imagine the effect of these tariffs on toasters, cutlery, cooking items, iPhones, cars (subject to a single 25% tax rate), clothes, fruit and vegetables, pork, pens, ceramics, lamps, jackets, snow shovels, tires, computers, printers, toys, and more. 

This is a pretty extreme tax on poor people, a moderate tax on relatively wealthy people, and a pittance on the rich. Our tax rates are built now so that the highest earners pay the highest ta

• So with tariffs and no taxes, the rate of tariff increases for the poor is very high percentage-wise. They will get about 10% more income but pay about 25% more things.
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• The rate of taxes now goes up for the middle classes, but with tariffs and no taxes, that is near a wash. They will get about 24% more income and pay about 25% more for things. 
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• For the upper class they will get about 33% more income - and this is where tariffs hit the least, so they get 33% more income and pay about 20% more on things.

So it isn't a tax on foreign countries, it is a tax increase on the poorest of us and a tax break for the richest of us.