Trump told you they would pay for the wall, one way or another. And if they won’t write the check, Trump has an idea that just might work.
Press Secretary Sean Spicer today revealed Trump may implement a 20 percent tax on the $50 billion or so worth of goods finding their way across the border.
The simple math there says that is $10 billion into the register, every year, which is more than enough to handle the cost of the wall.
Now, common sense says that with that tax, the flow of some of these goods will slow down, which is fine.
That would leave more American goods for people to purchase! I know I’m excited to buy American.
However, don’t miss the back end of that. While that tax would help American businesses, it would dramatically hurt Mexican businesses!
This is a point I have made numerous times, and I believe with a tax such as that, for some businesses, they would then be better off opening up plants in the United States just to sell those products here without paying the tax.
Investors are already very nervous about the future of Mexico, as just the Mexican president cancelling his meeting with Trump caused the peso to plummet today. It was also plummeting just after Trump’s election in November, meaning it has become very weak.
I have long said Mexico will be the next Greece if Nieto insists on a hardline stance against Trump, and that prediction may not be far from coming true at this rate.
At some point, Nieto is going to realize his country will go bankrupt if he does not give in to Trump in some way to satisfy Trump’s campaign promise. He is going to have to learn very quickly that a little crow will taste a lot better than the taste of a bankrupt country.
What do you think of Trump’s plan to pay for the wall? Please share this story on Facebook and tell us your thoughts because we want to hear YOUR voice!