How a tax plan unites progressives, the Koch brothers and Walmart – San Francisco Chronicle
As Americans face Tuesdays deadline to pay their taxes, the Trump administration is hinting that tax reform is up soon on its agenda, with the president predicting it will be an easier political lift than the botched GOP attempt to replace Obamacare.
He may be optimistic, because a key aspect of the tax overhaul would likely hurt some of the blue-collar voters who helped Trump win the presidency. Its known as a border adjustment tax.
The provision, which is used in many other nations, wouldnt tax goods that are exported but would tax imported products at about 20 percent. Its goal is to encourage companies to make their products in the United States, keeping jobs here. It would also raise up to $1 trillion in revenue over 10 years, an inflow that will be needed as most of the GOP tax plans being floated in Washington propose cutting the corporate tax rate from 35 percent to at most 20 percent.
But critics, including big-box retailers like Costco and Walmart that would have to pay the tax because they import most of their products, predict the average American family would pay $1,700 more a year to cover the resulting increase in the price of clothes, phones and other items on their shelves.
That would make life even tougher for Kailey Norris, a single mother who makes a little less than the nations median annual household income of $55,775. Covering that spike would wipe out the $1,000 Norris is trying to save every year.
Kailey Norris carries daughter Khyla Robinson, 3, into her preschool.
Kailey Norris carries daughter Khyla Robinson, 3, into her preschool.
I think things are pretty tight already. I would feel that, said Norris, a case manager at a San Francisco nonprofit who lives in Oakland with her 3-year-old daughter. Im paying for her school, and trying to pay for dance class, saving for her birthdays. And now Im looking at summer camps, and theyre really expensive.
I get what Trumps trying to do, Norris said. And it might not mean much to someone who makes a lot of money. But it would mean something to me.
People with a lot more money than Norris are concerned about its cost.
A new nationwide TV ad funded by the conservative billionaire Koch brothers organization rails against it: America voted for change, economic growth and to stop wasteful spending. But now, some members of Congress want a new, trillion-dollar ... consumer tax that could drive up your costs and hurt our economy. ... Tell Congress thats not the change were asking for.
Said Brent Gardner, chief government affairs officer for Americans for Prosperity, This is a tax aimed squarely at the Trump voter, and I hope this is one the administration will reject.
But Alan Auerbach, professor of economics and law at UC Berkeley who is known as the father of the border adjustment tax, dismissed the $1,700 increase as silly and outside the range of economic projections of what the tax might do. It also doesnt account for any tax cuts Americans may see under Trump or a stronger dollar as a result of the border tax change.
It would encourage companies to make their products in America, said Auerbach, who thinks it would also convince some Silicon Valley companies, such as Google and Apple, to stop basing operations in countries like Ireland, which have much lower corporate tax burdens.
If it sounds odd to hear somebody from Berkeley on the same political side as border tax supporter and Republican House Speaker Paul Ryan, it is illustrative of how the tax has scrambled the usual partisan formations.
On one side are organizations backed by the free-trade-loving Kochs, standing shoulder to shoulder with progressive Democrats like Rep. Ro Khanna, D-Fremont, and retailers like Walmart.
On the other side backing the tax are major manufacturers like Boeing, linking arms with Ryan, Rep. Wayne Brady, R-Texas, chairman of the powerful House Ways and Means Committee, and Trump strategist Steve Bannon.
Leaning toward the border adjustment tax, but not quite fully committed to it, is Trump. Though it would seem to fit squarely into his America First ethos, he doesnt like calling it a border adjustment tax. To him, thats bad branding, as he explained on the Fox Business Network this week.
Photo: Gabrielle Lurie, The Chronicle
(l-r) Kailey Norris goofs around with her daughter Khyla Robinson, 3, as she puts her in the car to go home from her pre-school in the Haight in in San Francisco, California, on Friday, April 14, 2017.
(l-r) Kailey Norris goofs around with her daughter Khyla Robinson, 3, as she puts her in the car to go home from her pre-school in the Haight in in San Francisco, California, on Friday, April 14, 2017.
(r-l) Kailey Norris picks her daughter Khyla Robinson, 3, from her pre-school in the Haight in San Francisco, California, on Friday, April 14, 2017.
(r-l) Kailey Norris picks her daughter Khyla Robinson, 3, from her pre-school in the Haight in San Francisco, California, on Friday, April 14, 2017.
Khyla Robinson, 3, goofs around in her carseat as she gets driven by her mother Kailey Norris (not pictured) to her pre-school in Oakland, California, on Thursday, April 13, 2017.
Khyla Robinson, 3, goofs around in her carseat as she gets driven by her mother Kailey Norris (not pictured) to her pre-school in Oakland, California, on Thursday, April 13, 2017.
Kailey Norris stops to pet a dog named Taz (center) with owner John Keegan (left) as she walks from her car to her office in the Haight district of San Francisco, California, on Thursday, April 13, 2017.
Kailey Norris stops to pet a dog named Taz (center) with owner John Keegan (left) as she walks from her car to her office in the Haight district of San Francisco, California, on Thursday, April 13, 2017.
Kailey Norris walks from her car to her office in the Haight district of San Francisco, California, on Thursday, April 13, 2017.
Kailey Norris walks from her car to her office in the Haight district of San Francisco, California, on Thursday, April 13, 2017.
Kailey Norris walks from her car to her office in the Haight district of San Francisco, California, on Thursday, April 13, 2017.
Kailey Norris walks from her car to her office in the Haight district of San Francisco, California, on Thursday, April 13, 2017.
Kailey Norris sings with her daughter Khyla Robinson (not pictured) as she drives her to pre-school in Oakland, California, on Thursday, April 13, 2017.
Kailey Norris sings with her daughter Khyla Robinson (not pictured) as she drives her to pre-school in Oakland, California, on Thursday, April 13, 2017.
Kailey Norris (left) straps her daughter Khyla Robinson, 3, (right) into her car seat as they make their way to pre-school in Oakland, California, on Thursday, April 13, 2017.
Kailey Norris (left) straps her daughter Khyla Robinson, 3, (right) into her car seat as they make their way to pre-school in Oakland, California, on Thursday, April 13, 2017.
Below, Kailey Norris says goodbye to her daughter Khyla Robinson, 3, at preschool in the Haight- Ashbury. Khyla hid in a cubby and didn't want her mom to leave.
Below, Kailey Norris says goodbye to her daughter Khyla Robinson, 3, at preschool in the Haight- Ashbury. Khyla hid in a cubby and didn't want her mom to leave.
Khyla Robinson, 3, goofs around in carseat as she gets driven by her mother Kailey Norris (not pictured) to her pre-school in San Francisco, California, on Thursday, April 13, 2017.
Khyla Robinson, 3, goofs around in carseat as she gets driven by her mother Kailey Norris (not pictured) to her pre-school in San Francisco, California, on Thursday, April 13, 2017.
How a tax plan unites progressives, the Koch brothers and Walmart
I dont like the word adjustment, because our country gets taken advantage of, to use a nice term, by every other country in the world, Trump said. So when I hear border adjustment, adjustment means we lose. We lose. So I dont like the term border adjustment.
But when you say a reciprocal tax and Im not saying thats what Im doing but there has to be a certain reciprocal nature to it. But when you say reciprocal tax, nobody can get angry, Trump said. Which says more about semantics than tax policy.
In California, analysts say the tax would have a mixed effect on some of the states iconic industries. Even though the states agriculture sector is a net exporter, a spokesman for the California Farm Bureau said the group is neutral on the tax.
Thats because while California farmers export around $25 billion worth of products annually, many also import equipment from overseas, said Dan Sumner, a professor of agriculture and economics who directs the University of California Agricultural Issues Center.
Sumner said farmers would be hurt if the tax triggers a trade war with some of Californias best export markets, like Mexico or the European Union.
Even though the United States has a loony corporate tax structure, we have to do this in a smart way, Sumner said. We dont want to create a system that takes away our big export destinations.
The tech industry is divided, too. As Hewlett-Packard Enterprise CEO Meg Whitman told CNBC earlier this year: Everything that is in our products comes from overseas. That supply chain has taken 30 years to set up. So when all those components come in and are taxed, its not going to be good. This does not create jobs. It actually lowers the number of jobs for many, many companies.
But the Silicon Valley Leadership Group, a public policy and trade organization that represents 400 top tech companies, hasnt taken a position, and wont until it sees a more fleshed-out version of Trumps tax plan.
The border adjustment tax would significantly change how the innovation economy operates, as it has the potential of choosing winners and losers among some of the largest contributors to our economy, said Carl Guardino, the groups president.
Khanna, who represents parts of Silicon Valley and went on trade missions when he worked at the Commerce Department, worried about a trade war threatening global economic stability.
We shouldnt be the ones throwing bombs at a financial global stability that we stand to benefit the most from as a country, Khanna said. We would pay more as consumers. More for our laptops. More for clothes. Its really a tax on the middle class.
Politically, Khanna didnt understand why Trump would support it.
Its going to hurt many of the folks who voted for him, Khanna said, And thats why its very, very surprising that hes pushing this.
If prices for imported toys and clothes would rise, Norris doesnt know whether she would buy from local stores. Shed like to, but theyre usually a lot more expensive.
My concern is that people who can afford it are still going to pay whatever the new price is, she said. But thats not going to work for the rest of us who are on a budget.
Joe Garofoli is The San Francisco Chronicles senior political writer. Email: jgarofoli@sfchronicle.com Twitter: @joegarofoli
See original here:
How a tax plan unites progressives, the Koch brothers and Walmart - San Francisco Chronicle
- Why are progressives winning across the United States? Its not complicated | Bernie Sanders - The Guardian - August 22nd, 2026 [August 22nd, 2026]
- In a Big Year for Progressives, Heres Why These Moderates Won Their Primaries - The New York Times - August 22nd, 2026 [August 22nd, 2026]
- South Korean progressives' 'Park Chung-hee' coalition in the AI era - Nikkei Asia - August 22nd, 2026 [August 22nd, 2026]
- Trump and Vance lead GOP midterm push as progressives head to Uruguay - Fox News - August 22nd, 2026 [August 22nd, 2026]
- Progressives are rising, but Black voters arent sold - Yahoo - August 22nd, 2026 [August 22nd, 2026]
- Hillary Clinton to host karaoke night for progressives in NYC - Washington Examiner - August 22nd, 2026 [August 22nd, 2026]
- Fox News: Get these sexy progressives away from my hungry eyes - Daily Kos - August 22nd, 2026 [August 22nd, 2026]
- Hillary Clinton to host karaoke night for progressives in NYC - Denver Gazette - August 22nd, 2026 [August 22nd, 2026]
- Suffolk Dem progressives on the prowl - Newsday - August 22nd, 2026 [August 22nd, 2026]
- Its Obvious Now Why Woke 1 Failed. I Have an Idea for How Progressives Can Be Less Annoying Next Time. - slate.com - August 22nd, 2026 [August 22nd, 2026]
- Top 5 most heated moments as progressives spar over who is farther to the left in final Dem Senate debate - Fox News - August 22nd, 2026 [August 22nd, 2026]
- Hey progressives: Shoplifting isnt need, its just plain greed - New York Post - August 22nd, 2026 [August 22nd, 2026]
- Progressives are on the march. Can they break Beacon Hill's status quo? - MassLive - August 22nd, 2026 [August 22nd, 2026]
- Opinion | The AI Emergency Is Already Hereand Progressives Must Confront It - Common Dreams - August 22nd, 2026 [August 22nd, 2026]
- Bernie Sanders has a response for progressives upset over Hongs loss in Wisconsin - Politico - August 16th, 2026 [August 16th, 2026]
- Progressives back substitute teacher over Wasserman Schultz in Florida - theguardian.com - August 16th, 2026 [August 16th, 2026]
- Before todays progressives, there were Conyers and Jackson | Thompson - The Detroit News - August 16th, 2026 [August 16th, 2026]
- GOP targets progressives as frustration over economy grows - The Hill - August 16th, 2026 [August 16th, 2026]
- Opinion | Progressives in 2026 Are in a Catch-22 - WSJ - August 16th, 2026 [August 16th, 2026]
- Major tests for progressives and Trump are on tap in Tuesdays primaries - NBC News - August 16th, 2026 [August 16th, 2026]
- Progressives see a win and a loss in Minnesota and Wisconsin Democratic primaries - prismreports.org - August 16th, 2026 [August 16th, 2026]
- Op-Ed: Progressives Are Winning the Future of Washington's Legislature - The Urbanist - August 16th, 2026 [August 16th, 2026]
- Trump ally loses, mixed results for progressives: takeaways from primaries in Minnesota, Wisconsin and beyond - theguardian.com - August 16th, 2026 [August 16th, 2026]
- Progressives are on the cusp of a huge win. Their biggest stars are staying away. - Politico - August 16th, 2026 [August 16th, 2026]
- Francesca Hongs loss in Wisconsin is a win for progressives - salon.com - August 16th, 2026 [August 16th, 2026]
- Why AOC and other progressives are backing off Woke 1 - vox.com - August 16th, 2026 [August 16th, 2026]
- Could progressives win over long-term Delaware Democrats? - Bay to Bay News - August 16th, 2026 [August 16th, 2026]
- CO-1 candidate Shimon Blau courts progressives after years of mocking them - 9News - August 16th, 2026 [August 16th, 2026]
- What Abdul El-Sayeds victory says about progressives, outsiders and the Democratic Party - ThePrint - August 16th, 2026 [August 16th, 2026]
- The Campaign Tactics Helping Progressives Win Primaries Ahead of the 2026 Midterms - The New York Times - August 11th, 2026 [August 11th, 2026]
- Progressives' wave of success meets choppy waters in Hawaii - USA Today - August 11th, 2026 [August 11th, 2026]
- Progressives look to shake up Beacon Hill as Sept. 1 primary nears. The key races and why they matter - MassLive.com - August 11th, 2026 [August 11th, 2026]
- Opinion | Without the Working Class, There's Only So Much Progressives Can Win - Common Dreams - August 11th, 2026 [August 11th, 2026]
- Progressives must ditch the all-or-nothing approach - The Seattle Times - August 11th, 2026 [August 11th, 2026]
- Progressives Rack Up Primary Wins, Testing Democratic Assumptions Ahead of the Midterms - Time Magazine - August 11th, 2026 [August 11th, 2026]
- The Democratic party needs to do more than represent wealthy progressives | Dustin Guastella - The Guardian - August 11th, 2026 [August 11th, 2026]
- Progressives expand their reach and money finds its limit: Takeaways from Tuesdays primaries - NBC News - August 11th, 2026 [August 11th, 2026]
- Progressives didnt get the big election night they wanted - Politico - August 11th, 2026 [August 11th, 2026]
- Wisconsin is the latest test for progressives, the electability argument and, soon, party unity - Straight Arrow - August 11th, 2026 [August 11th, 2026]
- Primaries in the Midwest have become a high stakes proving ground for progressives - NPR - August 11th, 2026 [August 11th, 2026]
- Key Election Takeaways From Progressives Big Night - wsj.com - August 11th, 2026 [August 11th, 2026]
- Primaries takeaways: Progressives score big wins and turn to November - ABC News - Breaking News, Latest News and Videos - August 11th, 2026 [August 11th, 2026]
- How White Progressives Co-Opting Woke Harmed the Black Community - Emerald Book - August 11th, 2026 [August 11th, 2026]
- El-Sayed gives progressives another victory and a new challenge - The Washington Post - August 11th, 2026 [August 11th, 2026]
- Progressives had another big primary night with a notable exception: From the Politics Desk - NBC News - August 11th, 2026 [August 11th, 2026]
- With Primary Wins, Progressives Make Clear That Michigan Is Not for Sale - Truthout - August 11th, 2026 [August 11th, 2026]
- Wisconsin is next battleground between progressives and moderates over future of the Democratic Party - Milwaukee Independent - August 11th, 2026 [August 11th, 2026]
- Opinion | Colorado Progressives Hike the Tax Slope - wsj.com - August 11th, 2026 [August 11th, 2026]
- Michigan primary gives progressives a breakthrough and Democrats a test - Detroit Free Press - August 11th, 2026 [August 11th, 2026]
- Progressives win in Michigan, and a pop star announces a break: The news quiz - NBC News - August 11th, 2026 [August 11th, 2026]
- After Abdul El-Sayeds Win in Michigan, Progressives Are Preparing for the Next Round Against AIPAC - inthesetimes.com - August 11th, 2026 [August 11th, 2026]
- Progressives in Ascendance With Key Primary Wins in Michigan | National News | U.S. News - U.S. News & World Report - August 11th, 2026 [August 11th, 2026]
- Progressives big Midwest test - Politico - August 11th, 2026 [August 11th, 2026]
- Progressives vs. The Establishment: AOC says party is united on key issue - Modern Ghana - August 11th, 2026 [August 11th, 2026]
- Queens councilmember breaks with progressives on ICE abolition letter - Queens Daily Eagle - August 11th, 2026 [August 11th, 2026]
- As moderates beat progressives in Hawaii, nation looks to Wisconsin Gov. race | Morning in America - NewsNation - August 11th, 2026 [August 11th, 2026]
- Elena Kagan's warning to progressives attacking the Supreme Court - reason.com - August 11th, 2026 [August 11th, 2026]
- El-Sayed scores marquee victory for progressives, and other takeaways from Tuesdays primaries - WKOW - August 11th, 2026 [August 11th, 2026]
- Can Opposing Data Centers Help Progressives Win? - Mother Jones - August 1st, 2026 [August 1st, 2026]
- Progressives Midwest insurgency is powered by the growing data center backlash - Semafor - August 1st, 2026 [August 1st, 2026]
- Religion isnt just for the right: five ways progressives are invoking religious freedom laws - The Guardian - August 1st, 2026 [August 1st, 2026]
- Meet All the New Progressives and Democratic Socialists Heading to Congress - Zeteo - August 1st, 2026 [August 1st, 2026]
- Analysis: Have progressives peaked? The next few weeks will be crucial in Democrats tug-of-war - WBAL News Radio - August 1st, 2026 [August 1st, 2026]
- Rep. Burgess Owens says progressives are getting involved with GOP primaries to shift Utah leftward - Yahoo - August 1st, 2026 [August 1st, 2026]
- Utah Republican says progressives are inside the gate to shift Utah to the left - Deseret News - August 1st, 2026 [August 1st, 2026]
- Sanders on Fetterman attacks: I would not put too much credibility on what he says about El-Sayed and Progressives - cnn.com - August 1st, 2026 [August 1st, 2026]
- Minnesota progressives campaign on Medicare for All as ranks of uninsured grow - MinnPost - July 24th, 2026 [July 24th, 2026]
- Progressives want to tax billionaires first, and you're next on the list - Fox News - July 24th, 2026 [July 24th, 2026]
- Crypto, AI, and AIPAC Super PACs Are Spending in Lockstep Against Progressives - The Nation - July 24th, 2026 [July 24th, 2026]
- Gerth: Progressives pushing Beshear on McConnell are wrong | Opinion - The Courier-Journal - July 24th, 2026 [July 24th, 2026]
- Analysis: Have progressives peaked? The next few weeks will be crucial in Democrats tug-of-war - The Seattle Times - July 24th, 2026 [July 24th, 2026]
- Progressives Nice-to-Have Problem: What to Do With Excess Capital - WSJ - July 24th, 2026 [July 24th, 2026]
- Analysis: Have progressives peaked? The next few weeks will be crucial in Democrats' tug-of-war - WKMG - July 24th, 2026 [July 24th, 2026]
- Progressives Opposed to SEDA Talk From Both Sides of Their Mouths - GV Wire - July 24th, 2026 [July 24th, 2026]
- Will Incoming Progressives Give Hakeem Jeffries Their Support? - News of the United States - NOTUS - July 24th, 2026 [July 24th, 2026]
- Insufficient? The Bible And Baptist Progressives - Patheos - July 24th, 2026 [July 24th, 2026]
- Analysis: Have progressives peaked? The next few weeks will be crucial in Democrats' tug-of-war - Star Beacon - July 24th, 2026 [July 24th, 2026]
- Nicholas Lemanns aggrieved article on Jews and progressives reveals a blindness to the evil of Zionism - Mondoweiss - July 24th, 2026 [July 24th, 2026]
- Analysis: Have progressives peaked? The next few weeks will be crucial in Democrats' tug-of-war - Temple Daily Telegram - July 24th, 2026 [July 24th, 2026]
- Bill Maher levels progressives with three-word slam and might just vote for JD Vance in 2028 - Yahoo - July 24th, 2026 [July 24th, 2026]