RISE UP ATLANTA FANS – Super-Bowl Sunday is just three short days away! While I’ve been studying up on Matt Ryan, Julio Jones, and the rest of the Falcons team, I’ve also been planning my Super-Bowl Sunday Snacks and I love some chips, salsa, and home-made guacamole.
Late last week, I heard some ramblings about our new administration and the fact that Mexican imports could soon be imposed with a 20% tax. A 20% tax…wow that is steep. A ripe green avocado which normally sells for around $1.50 could graze the $2.00 per piece rate because the best avocados are imported from Mexico. How could this possibly be? What did the helpless avocado do to us?
Here’s the skinny: White House Press Secretary, Sean Spicer announced last week that one of Trump’s ideas to fund the border wall is a 20% tax on Mexican imports. The additional tax would raise $10 billion a year (which would easily pay for a border wall, which has an estimated cost of $8 - $20 Billion) – not to get political, but, I know that I wasn’t supposed to have to pay for that wall…but by taxing my favorite Mexican produce, it appears I am going to be paying for that wall. Hmm….
I wanted to do some more research and really get to the bottom of this. Did you know that the US Department of Agriculture has indicated each year since 2013 that Mexico is responsible for almost 70% of our imported fruit and produce? So while the proposed 20% tax would be assessed on the importer of such goods, you can rest assured that the impact will be passed down to the consumer.
This means that fruits, and produce will increase in stores, as well as in restaurants, and then restaurant prices will increase to include the additional tax. So while the avocado, in recent years, has shot to the spotlight of healthy produce, American’s may soon have a new reason to pass on the guacamole or avocado spring rolls with this new tax. In addition to fresh fruits and produce, Mexico is also responsible for the following imports where American consumers would see a stiff increase: Tomatoes, Beer, Tequila, and Sugar.
How will Mexico react? Word on the street is that just as our legislation is discussing this 20% increase in tax, Mexico could easily impose similar or more expensive tax tariffs on imports from the U.S.
So while you enjoy your Super-Bowl Sunday snacks, think about how your diet would be impacted by a 20% tax? Will this tempt you to try your hand at gardening and growing your own fresh fruit and produce? Or do you see the potential impact as small enough that it isn’t worth all the hoopla? Regardless, we at TaxConnex wish you an exciting and yummy Super-Bowl and have (with the help of Bobby Flay) included a recipe below for our favorite snack-time spicy guacamole! http://www.cookingchanneltv.com/recipes/bobby-flay/spicy-guacamole.html