Key takeaways:
– Donald Trump announced the creation of an ‘External Revenue Service’ aimed at collecting tariffs and foreign income.
– Steve Bannon interpreted the mission as broader than just tariffs, including charging fees for various types of access to the US.
– Economic experts warned these tariffs could burden US consumers.
– Implementation details of the new agency remain unclear.
The ‘External Revenue Service’: Beyond ‘Taxing our Great People’
In a recent dispatch from President-elect Donald Trump, a brand-new arm of revenue collection dubbed the ‘External Revenue Service’ is emerging. Rather than utilizing the Internal Revenue Service (IRS), which Trump claims has been ‘relied on for far too long’, this novel agency aims at acquiring tariffs and income from foreign sources.
Trump contended that the time has come to begin charging those profiting from US trade. His argument is that these foreign-based income sources should finally pay their ‘fair share’. An inaugural ceremony at the US Capitol awaits Trump, who anticipates the External Revenue Service to start operations as soon as he officially assumes the station of President on Monday.
New Revenue Service: Insight into Operation
Clarity on how this proposed External Revenue Service will function remains a question mark. Presently, tariffs are handled by the U.S. Customs and Border Protection, who collect funds along with associated import fees. These funds are subsequently deposited into the US General Fund. Despite Trump’s promise to downsize government, creating this revenue service would essentially add another agency, a move seemingly redundant to operations already in place.
Alt-Right influencer Steve Bannon recommends an extended purview for the prospective agency. Speaking at a Politico-run conference, Bannon insisted that the focus should extend beyond tariffs to encompass all potential sources of fees. Bannon`alluding to investments and country access fees was encompassing.
“We need to focus on how you can charge fees. America is more than just free access to a robust and lucrative market,” Bannon stressed. His depiction of America’s market hails it as a quintessential treasure trove, a stark contrast to Trump’s disconcerting portrayal of a failing economy.
Policy Impact and Implications
This fresh announcement from Phump follows his threatening move to impose 25 percent tariffs on Canada and Mexico, with China potentially facing an additional 10%. Multiple economic thought leaders have begun warning consumers. The brunt of these tariffs, pundits fear, will fall on them rather than the foreign companies exporting goods.
Potential ‘significant consequences’ for American consumers, refiners, as well as Canadian producers, were highlighted by Goldman Sachs’ researcher Daan Struyven, in a conversation with Bloomberg. George Washington University economics professor Tara Sinclair has echoed the sentiment, stating that tariffs are essentially a ‘higher tax on consumers – U.S. consumers’.
Future of The ‘External Revenue Service’
Currently, the operational details of the External Revenue Service remain vague, raising questions about its necessity and how it will function separately from existing agencies. Critics argue that the tariffs and their implications would hit American consumers rather than the intended foreign entities. The debate regarding this new service and its potential impacts is sure to be a leading topic in the forthcoming Trump administration.