Surprise! A Border Adjustment Tax Screws the Poor and the Working Class.

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Kadee Russ, formerly a senior economist for the CEA and now a professor of economics at UC Davis, has taken a rough cut at the distributional effects of a border adjustment tax, the front-runner among “sort of a tariff” tax plans currently making the rounds in Congress. A BAT would supposedly raise about $200 billion per year, but raise it from whom? Here’s her estimate:

Isn’t that a shocker? It’s a regressive tax that hits the working class harder than it does the rich. What’s more, the whole point of imposing a BAT is to raise money so that personal income taxes can be slashed on the rich top marginal rates on job creators can be reduced. This whole Trump presidency thing is working out really well for the working class, isn’t it?

TECHNICAL NOTE: Russ calculated the cost of the tax by income decile. I merged her first eight deciles into four quintiles. Click the link to see her original estimates.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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