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Trump tariffs to hit low-income Americans harder than richest: Report
President Donald Trump's tariffs would effectively cause a tax increase for low-income families that is more than three times higher than what wealthier Americans would pay, according to an analysis from the Institute on Taxation and Economic Policy.
The report from the progressive think tank outlined the outcomes for Americans of all backgrounds if the tariffs currently in effect remain in place next year. Those making $28,600 or less would have to spend 6.2 per cent more of their income due to higher prices, while the richest Americans with income of at least $914,900 are expected to spend 1.7 per cent more. Middle-income families making between $55,100 and $94,100 would pay 5 per cent more of their earnings.
Economists have warned that costs from tariff increases would ultimately be passed on to US consumers. And while prices will rise for everyone, lower-income families are expected to lose a larger portion of their budgets because they tend to spend more of their earnings on goods, including food and other necessities, compared to wealthier individuals.
Food prices could rise by 2.6 per cent in the short run due to tariffs, according to an estimate from the Yale Budget Lab. Among all goods impacted, consumers are expected to face the steepest price hikes for clothing at 64 per cent, the report showed.
The Yale Budget Lab projected that the tariffs would result in a loss of $4,700 a year on average for American households.
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India.com
an hour ago
- India.com
Explained: Why Did Protests Erupt In Los Angeles? Who Sent The National Guard? What Triggered The Chaos?
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Protesters accused federal agents of targeting Latino neighbourhoods. By evening, hundreds of demonstrators rallied outside the Los Angeles Federal Building. Homeland Security officers fired pepper balls into the crowd. LAPD officers dispersed the group shortly after. More than 100 people were arrested, including David Huerta, head of the Service Employees International Union (SEIU) California. Officials said he blocked a federal vehicle and impeded law enforcement. On June 7 morning, demonstrations grew. In Paramount, about 20 miles south of downtown Los Angeles, protesters gathered near a Home Depot after hearing rumors of another ICE raid. Clashes broke out. Protesters kicked and threw items at law enforcement vehicles. Officers responded with tear gas. Later that afternoon, tensions rose. The Los Angeles County Sheriff's Department ordered crowds to leave. They warned of arrests and use of force. Tear gas was fired again. In Compton, protests continued after dark. Officers used rubber bullets and flash-bangs. Protesters threw rocks, fireworks and glass bottles. Back in downtown L.A., demonstrators gathered outside the Metropolitan Detention Center. The LAPD declared an unlawful assembly and set up barriers. Around 6:00 PM, President Donald Trump signed a memo ordering 2,000 National Guard members to deploy in Los Angeles. The goal was to protect federal agents involved in immigration enforcement. He acted allegedly without approval from California Governor Gavin Newsom or Los Angeles Mayor Karen Bass. By early Sunday morning on June 8, about 20 National Guard troops had arrived at the Metropolitan Detention Center. By 10:30 AM, nearly 300 troops were stationed across three sites in Los Angeles. Over a dozen Homeland Security officers in riot gear joined them at the detention centre. By 1:00 PM, Guard members, ICE officers and Homeland Security agents formed a defensive line. They pushed protesters back using tear gas, pepper balls and other crowd-control weapons. Crowds spilled onto the southbound 101 Freeway, blocking traffic. The California Highway Patrol later cleared the road. On Alameda Street, protesters set fire to at least four self-driving Waymo cars. Thick black smoke rose above the buildings. The electric cars exploded as they burned. Trash bins were lit on fire. Windows were smashed. The LAPD Headquarters, U.S. Courthouse and the old Los Angeles Times building were vandalized. The police fired rubber bullets and declared another unlawful assembly by evening. Flash-bangs echoed through the streets. At 6:00 PM, most protesters had dispersed. A few remained near Alameda Street. Who Said What LAPD Chief Jim McDonnell said the department was overwhelmed. He added that the police were not told in advance about the federal raids. Under California's sanctuary law SB 54, the local police cannot assist federal immigration agents. Governor Gavin Newsom called the deployment of the Guard 'illegal and immoral'. He said President Trump had 'federalised the National Guard' without permission. Newsom vowed to sue. Mayor Karen Bass said the administration was provoking chaos, not ensuring safety. President Trump responded on Truth Social, telling LAPD to arrest protesters wearing face masks. He wrote on TruthSocial, 'Looking really bad in L.A. BRING IN THE TROOPS!!!' Defense Secretary Pete Hegseth posted that Marines at Camp Pendleton were on high alert. He warned they would be mobilised if needed. When asked about when he would send in the Marines, Trump said, 'The bar is what I think it is.' Congresswoman Maxine Waters called the situation outrageous. She accused Trump of targeting sanctuary cities. She said he was trying to create conditions for martial law. Former Vice President Kamala Harris also spoke out. 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an hour ago
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