Posted on 12/05/2016 12:48:47 PM PST by Pinkbell
WASHINGTON; If President-elect Donald Trump thinks he’s going to impose a 35 percent tariff on companies importing goods, he might want to check with Republicans in Congress.
House Majority Leader Kevin McCarthy (R-Calif.) suggested Monday that Republicans would not be in favor of imposing the 35 percent tariff on foreign goods that Trump proposed Sunday in a series of tweets.
Trump may not understand how tariffs really work; it would be very difficult for the United States to impose them on specific companies that move jobs to a foreign country; or that Congress, not the president, sets them. But he also might be trying to use trade complexities to end run around Congress.
The president’s administration could declare a given country in violation of certain trade acts, and then impose a retaliatory tariff. It would then be up to the other nation to lodge protest with the appropriate authority.
If Trump wanted to push the issue, he probably could impose a tariff and wait for Congress, the courts or a trade organization to do something about it. And if he truly wants to do it, Republicans could be the ones going after Trump.
“I don’t want to get into some sort of trade war,” McCarthy said, still downplaying the policy differences between Trump and congressional Republicans.
There is some debate about how much power the president has to enact tariffs and “rip up” trade deals. The president could declare the United States in violation of certain trade acts, and then try to impose a tariff based on those old laws, but there would be significant pushback from Congress.
Regardless, the majority leader said Republicans were intent on overhauling the corporate tax code so businesses would stay in the United States. “That’s the best way to solve this problem,” McCarthy said.
(Excerpt) Read more at huffingtonpost.com ...
I guess this dope doesn’t see that. These GOP politicians and the press are sickening. I’ve turned them completely off.
Come on! Give poor McCarthy a break!
How is he supposed to leave Congress a multimillionaire on $174 000 a year?
Losers corporate profits and K -Street lobbyists.
Winners US taxpayers and the unemployed. Consumers will see improved quality. Prices will stay the same as the importers will be forced to eat the tariff and domestic production will eventually come on line. That is the whole point.
A 20% tariff would balance the budget tomorrow.
There is no down side.
I read somewhere that the tariff will necessarily have to be across the board.
HOW ELSE do you EVER jump start manufacturing in the USA?
TRUMP said, “We don’t make anything anymore”. He intends to change that where he can.
Only globalists want to assign manufacturing plants out of the United States and increase imports so that we are not producing squat in the USA.
I certainly hope the tiny minority of Free Traitors™ gets the hell out of the Republican Party.
To effectively deal with a problem you FIRST have to ID the root cause of the problem. Then you attack the root problems.
The root problem of business fleeing our country is THE FEDERAL GOVERNMENT.
The effective solutions that DIRECTLY ATTACKS the root problem BEGIN with:
- Abolish the unconstitutional federal minimum wage
- Abolish unconstitutional federal regulations
- Abolish unconstitutional federal union protection
- Abolish federal corporate taxes which is a hidden form of higher individual taxes
What, if you vote for someone for political office you’re going to go around and worship him and agree with everything he says and does? Sadness. Voting for a politician giving him power over you and your money is like a treaty - you trust but you VERIFY. Although I like Trump for many reasons, I’ve diasagreed with him about tariffs from day one
McCarthy is still the Lieutenant for Putz Ryan.
Ryan is a nut for the open borders and North American Union, and terribly out of place as the Speaker of the House.
He is an obvious player and McCarthy is sharing the play against TRUMP.
Losers - Foreign manufacturers
Winners - Domestic manufacturers
Fixed it for ya.
What would President Reagan say about 35% tariffs?
Words are not deeds. Unfortunately, a look at the Reagan record leads to the question: With free traders like this, who needs protectionists?
Consider that the administration has done the following:
— Forced Japan to accept restraints on auto exports. The agreement set total Japanese auto exports at 1.68 million vehicles in 1981-82, 8 percent below 1980 exports. Two years later the level was permitted to rise to 1.85 million.(33) Clifford Winston of the Brookings Institution found that the import limits have actually cost jobs in the U.S. auto industry by making it possible for the sheltered American automakers to raise prices and limit production. In 1984, Winston writes in Blind Intersection? Policy and the Automobile Industry, 32,000 jobs were lost, U.S. production fell by 300,000 units, and profits for U.S. firms increased $8.9 billion. The quotas have also made the Japanese firms potentially more formidable rivals because they have begun building assembly plants in the United States.(34) They also shifted production to larger cars, introducing to American firms competition they did not have before the quotas were created. In 1984, it was estimated that higher prices for domestic and imported cars cost consumers $2.2 billion a year.(35) At the height of the dollar’s exchange rate with the yen in 1984-85, the quotas were costing American consumers the equivalent of $11 billion a year.(36)
— Tightened up considerably the quotas on imported sugar. Imports fell from an annual average of 4.85 million tons in 1979-81 to an annual average of 2.86 million tons in 1982-86. Not only did this continued practice force Americans to spend more than other consumers for sugar, but it created hardships for Latin American countries and the Philippines, which depend on sugar exports for economic development. The quota program undermined President Reagan’s Caribbean Basin Initiative and intensified the international debt crisis.(37)
— Negotiated to increase restrictiveness of the Multifiber Arrangement and extended restrictions to previously unrestricted textiles. The administration unilaterally changed the rule of origin in order to restrict textile and apparel imports further and imposed a special ceiling on textiles from the People’s Republic of China.(38) Finally, it pressured Hong Kong, Taiwan, and South Korea, the largest exporters of textiles and apparel to the United States, into highly restrictive bilateral agreements. All told, textile and apparel restrictions cost Americans more than $20 billion a year.(39) The Reagan administration has stated several times that textile and apparel imports should grow no faster than the domestic market.(40)
— Required 18 countries—including Brazil, Spain, South Korea, Japan, Mexico, South Africa, Finland, and Australia, as well as the European Community—to accept “voluntary restraint agreements” to reduce steel imports, guaranteeing domestic producers a share of the American market. When 3 countries not included in the 18—Canada, Sweden, and Taiwan— increased steel exports to the United States, the administration demanded talks to check the increase. The administration also imposed tariffs and quotas on specialty steel. These policies, with their resulting shortages, have severely squeezed American steel-using firms, making them less competitive in world markets and eliminating more than 52,000 jobs.(41)
— Imposed a five-year duty, beginning at 45 percent, on Japanese motorcycles for the benefit of Harley Davidson, which admitted that superior Japanese management was the cause of its problems.(42)
— Raised tariffs on Canadian lumber and cedar shingles.
— Forced the Japanese into an agreement to control the price of computer memory-chip exports and increase Japanese purchases of American-made chips. When the agreement was allegedly broken, the administration imposed a 100 percent tariff on $300 million worth of electronics goods. This episode teaches a classic lesson in how protectionism comes back to haunt a country’s producers. The quotas established as a result of the agreement have created a severe shortage of memory chips and higher prices for American computer makers, putting them at a disadvantage with foreign competitors. Only two American firms are still making these chips, accounting for a small percentage of the world market.(43)
— Removed Third World countries from the duty-free import program for developing nations on several occasions.
— Pressed Japan to force its automakers to buy more American-made parts.(44)
— Demanded that Taiwan, West Germany, Japan, and Switzerland restrain their exports of machine tools, with some market shares rolled back to 1981 levels. Other countries were warned not to increase their shares of the U.S. market.
— Accused the Japanese of dumping roller bearings, because the price did not rise to cover a fall in the value of the yen. The U.S. Customs Service was ordered to collect duties equal to the so-called dumping margins.(45)
— Accused the Japanese of dumping forklift trucks and color picture tubes.(46)
— Failed to ask Congress to end the ban on the export of Alaskan oil and of timber cut from federal lands, a measure that could substantially increase U.S. exports to Japan.
— Redefined “dumping” in order “to make it easier to bring charges of unfair trade practices against certain competitors.”(47)
— Beefed up the Export-Import Bank, an institution dedicated to promoting the exports of a handful of large companies at the expense of everyone else.(48)
Regardless, tariffs are not the answer for businesses fleeing the country because they don’t attack the root causes of why businesses are leaving in the first place.
Trump appears to understand exactly what Alexander Hamilton did when he proposed tariffs, and what the First Congress did when they passed the bill, and which President Washington understood when he signed it.
The Tariff Act of 1789, was the first major Act passed in the United States under its present Constitution of 1789 and had two purposes as stated in Section I of the Act which reads as follows;
"Whereas it is necessary for that support of government, for the discharge of the debts of the United States, and the encouragement and protection of manufactures, that duties be laid on goods, wares and merchandise.
Kevin McCarthy is a traitorous Ryan Republican. He needs to be primaried.
He's not smart enough not to be used by the msm.
Trump plans on lowering business tax from 35% to 15%. Trump plans to get rid of a huge swatth of federal regulations. Few if any manufacturers pay Federal minimum wage which sits at $7.25. Abolishing it would have next to no impact on US industrialization and would be a waste of political energy.
“Only globalists want to assign manufacturing plants out of the United States and increase imports so that we are not producing squat in the USA.”
That is if you do not want to include the 20,000,000 Americans who are writing code.
They are producing and many are very well paid.
Writing code is production, production that is no different than building a car.
perfect.
All Trump has to do is talk about things and change happens.
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