|A Tax On Guacamole?|
The first impact of this tax will be on us consumers. The plan is to slap an immediate 20% tax on all foreign imports. That to me is crazy on the face of it because of who will take the hit. Attention Wal-Mart shoppers, you'll be feeling it in your wallet right away--and that goes for retail consumers across the board. It's little wonder that the National Retail Federation is crying "foul" over this proposal, claiming that it could cost the typical American family as much as $1700 hundred a year. Analyses that I've read consider that a stretch, but nobody disputes that consumers will be shelling out more money for the products they buy on a day-to-day basis. Every shopper in town knows that their households are loaded with imported food and other retail goods. For a state like South Dakota, where median incomes are slightly below the national average while the cost of living is slightly above it, consumers will feel--if not entirely understand--the pain induced by this gratuitous tax on them.
Meantime, what about the long term effect of this tax on our state's ag industry? First off,
(graphic from UC Davis)