Posted on 10/30/2018 6:37:00 PM PDT by TBP
As 2018 has unfolded, new tariffs on imports have only grown in size. Initial tariffs, such as those levied on imported solar panels and washing machines, probably added less than $1 billion each to government coffers.
The president warned that "if China takes additional retaliatory action, which is almost certain, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports."
Yes, that's a 25 percent tariff on virtually everything imported from China.
For well over a decade, policymakers have discussed a revenue-neutral carbon tax, in which new taxes paid on emissions would be offset by lowering the overall corporate tax rate. Nobody would have considered this a tax cut. It would have been a change to the corporate tax structure designed to achieve a certain policy goal.
(Excerpt) Read more at seekingalpha.com ...
3.5% growth is better than 1.5.
You know what? We have too much junk anyways.
We don’t need to buy so much stuff.
Just quit buying all that junk from overseas that you don’t need anyways, and voila` you’re ahead of the game.
What? The tax cuts help our domestic manufacturers. Tariffs hurt China.
It all evens out now that they can no longer dump a flood of cheap goods in our market.
Which makes made in USA economically viable again.
“... revenue-neutral carbon tax, ...”
Stopped right there.
Let’s first discuss why the h*ll we have a frigging carbon tax.
Who benefits from that?
Not the earth.
And certainly not the taxpayer.
“This is what some of us are afraid of — that the tariffs would undo the good the tax cuts did.”
I was never afraid of that, myself.
But maybe it is better, after all, to allow China to completely de-industrialize the United States and tax what we have left to manufacture to boot.
So, stop buying so much cheap Chinese crap. Don’t confuse the long-range purpose of the tariffs with the role of the tax cuts - while they are related, they are not natively connected.
Tariffs are the only method outline in the Constitution for generative federal revenue (other than land sales, which was finite). Tariffs were selected in favor of direct tax for two reasons: freedom of the individual and his property, and 2) to limit the size of the fedaral treasury.
Trump’s tariffs are a long-overdue remedy for China’s manipulation, product dumping and trade circumvention. They are a near-term, immediate alternative to continually getting fleece.
The tax cuts are longer term: it’s not just the money. It’s the lower corporate rates, the ability to repatriate overseas capital - and the jumpstart those dynamics give to the economy.
Abortion may wipe out gains from reduced traffic deaths.
That has to be the most ignorant statement I have seen on FR in 2018 so far.
People who think that do not know that manufacturing is the most powerful wealth creator among the only 4 wealth creators which are Manufacturing, Mining (includes fluid substances such as oil & gas), Agriculture, and Applied Research (which creates products in demand in the marketplace).
Every dollar of trade deficit represents equivalent loss of manufacturing jobs in United States. Tariffs is the only tool we have to force balanced/fair trade. In short term, there will be some dislocations, in long term it is a yuge gain in American prosperity.
It’s a “trade war.” It won’t go on indefinitely. Trump is in it to win it ... for the USA.
So many people think in 3-month timeframes. Winning this trade war will take longer than that. Maybe a few bad “quarterly reports.” And then we’ll win, in the long run.
Put another way, I love tariffs as they are the closest thing we have to a sales tax.
Good to read your post, based on actual experience in trade.
Short term non thinkers are losers. GTH globalists.
“Yes, that’s a 25 percent tariff on virtually everything imported from China.”
Which is very different from American consumers having to pay 25% more.
We have a diverse domestic economy, and all the rest of the world, for potential substitutes. Competitors and new producers will just ramp up and take the business from the communists. Also, the US Government gets a temporary windfall of tariff revenue.
It is just a matter of some time for supply and demand to re-balance, with communist China left out. Ultimately, US consumers will not have to pay significantly increased costs for long. Each quarter, more replacements will be entering the markets. Chinese producers are replaceable.
China does not have comparable substitutes available - it is going to be harder on them. By fighting them now, on this field of conflict (where we have such great advantages) can likely avoid having to fight them later on their terms, when we are weaker, and they even stronger. This is the wise long term strategy, and the cost is more of a manageable inconvenience, than a serious pain.
Who do you think pays it?
Buy USA products, period. If you pay more at times, you’re giving your neighbors a job. Duh.
” If you pay more at times, you’re giving your neighbors a job. Duh.”
If you pay more you might get something that actually lasts longer,therefore saving money in the long run.
.
.
“Tariffs May Wipe Out Gains From Tax Cut”
Could also be interpreted:
Tax Cuts May Wipe Out the Pain From Tariffs.
Long term, we need to pull the supply chain out of communist China, before they dominate the World. They are not just bad guys, they are getting worse quickly.
Getting the tax cuts first protects living standards during the rapid transition, and makes America more competitive, to capture more of the business put up for grabs, by cutting out the communists. The tax cuts are long term though, while the transition disruption from tariffs are only temporary.
Solid strategy. 4D chess.
2019, when these mighty tariffs take hold, will be the major muscle movement of the transition. The real squealing has yet to begin.
Communism will be greatly weakened, America will make long term, Strategic gains. MAGA!
Too simple EVERYTAX is a tax on the consumer.
All the costs businesses and the people in them pay are paid by the consumers.
“Tax the rich” it’s paid by consumers.
If tariffs don’t encourage economic efficiency then they are not good.
Considering the shenanigans of the Chinese (especially) they could save us all money- in this situation.
I expect China to fold and follow the rules- much better than they do now anyway. Which will be good for American consumers.
Bingo! Trump is looking for a long-term fix. But - it takes big, brass ones, and the ability to stand up to the heat - even if it comes from your own side.
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