Criticisms of tariffs, taxes are fair

| 11 May 2026 | 01:53

    The May 7-13, 2026, issue contained a letter from Luann Byrne opining on the unfairness of criticizing Tom Kean, Jr. for tariffs and supporting the One Big Beautiful Bill Act (OBBBA). Criticism, in this writer’s opinion, is fair. A couple of examples below illustrate why.

    First, Ms. Byrne indicates that “tariffs were never voted on, and the President cut the tariffs on coffee (sic) cocoa, beef and bananas....” Regardless of whether the tariffs were imposed unilaterally, supporting such a policy is a legitimate basis for criticism. Blanket use of tariffs is not good economic policy. Tariffs become taxes on the population at large because we pay the higher costs of goods. Also, because higher priced goods mostly affect those of lesser means while not subjecting higher incomes to additional tax, the wealthy have historically preferred tariffs as a taxation method. And, finally on tariffs, President Trump imposed higher tariffs on coffee, cocoa, beef, and bananas. He does not get credit for removing them.

    Second, the OBBBA provisions for no tax on tips, overtime, and social security have gotten quite a bit of press. These provisions, however, unlike the permanent tax provisions that predominantly benefit the wealthy (more on this below), all expire on Dec. 31, 2028.

    Also, these are not tax exemptions, they are tax deductions. A tip worker making minimum wage in New Jersey (base wage plus tips) has an annual salary of $33,114 ($15.92/hour). Assuming this worker is married and jointly filing a tax return, the current standard deduction is $31,500. Therefore, the benefit to this worker from the additional tip tax deduction is $1,614 at a tax rate of 10% (savings - $161). For perspective, the national median wage of waiters and waitresses is $31,940. By comparison, the OBBBA reduces the highest marginal tax rate from 39.6% to 37% for annual income above $751,600 (married, filing jointly). As reported by Fox5 (July 17, 2024), the top 1% of wage earners in New Jersey have an annual income of $1,010,101 or more. These wage earners would get a minimum reduction in taxes of $6,721. Does someone making at least a million dollars a year need this tax benefit while the OBBBA cuts $1.1 trillion dollars to SNAP, Medicaid, and other health programs? Is it fair to be critical? I believe so. Our democracy depends on debate and compromise.

    In conclusion, we need to be informed voters. Go to candidate events, ask tough questions, get news on the candidates’ positions, do some homework so you can cast your vote for the candidate who will best represent us. And, above all, vote.

    Gary DiPippo

    Wantage